This report reviews the status of Japanese hardware, systems and applications for digital information organization (DIO) with a particular emphasis on digital libraries. Specific topics include technological development in both hardware and software; practical DIO applications; cooperation among government, industry and universities; and economic and policy issues. The report includes site reports for visits conducted by the panel members to leading research laboratories and universities in Japan. The panel's conclusions include the following: (1) DIO systems in the United States and Japan are based on common, integrated technologies to provide a spectrum of services; (2) Japan is producing extremely fast large-capacity hardware/software research systems; (3) Japan leads the United States in digital display development by about two years; (4) Japanese libraries are digitizing catalogs on a grand scale; (5) distributed digital libraries will revolutionize education and learning; (6) Japan has a clearly articulated national information infrastructure policy that views DIO as critical to "an advanced information society." These and other conclusions are reviewed in detail in the panel's executive summary.