Report of the Director by Daniel Gorenstein Since DIMACS' last newsletter, two developments have occurred that will have a major impact on its future: first, DIMACS moved into permanent quarters and secondly, it received a renewal of its NSF funding for the next five years. Beginning last August, DIMACS began to occupy the entire fourth floor of the new Rutgers Computer, Research and Education building which is connected by an enclosed ramp to the Hill Center for the Mathematical Sciences. This provides DIMACS with approximately 15,000 square feet of space, divided into offices, seminar, conference and computer rooms, and lounge, plus use of an auditorium on the first floor. The space has turned out to be ideally suited for workshops of up to 100 participants. To inaugurate our new setup, DIMACS held a reception on October 28 for its members and other guests, following a special lecture by John Conway of Princeton University entitled, "Some Things You Can't Hear the Shape Of". Each of the original eleven NSF Science and Technology Centers, including DIMACS, were reevaluated during the period July 1 - December 1. This included an extensive and intensive two-day site visit in September by an external panel of mathematicians and computer scientists as well as a number of representatives from NSF. DIMACS was gratified to learn later in December that it had received the highest possible rating for its scientific achievements and that its funding was to be for five years beginning February 1, 1992, at the level of $2,000,000 per year. As DIMACS reaches the end of its third year, it is increasingly being accepted by the broader national and international community as a leading center for research and education in the areas of discrete mathematics and theoretical computer science.