The Operator Theory conferences, organized by the Department of Mathematics of INCREST and the Department of Mathematics of the University of Timi~oara, are conceived as a means to promote cooperation and exchange of information between specialists in all areas of operator theory. This book comprises carefully selected papers on theory of linear operators and related fields. Original results of new research in fast developing areas are included. Several contributed papers focus on the action of linear operators in various function spaces. Recent advances in spectral theory and related topics, operators in indefinite metric spaces, dual algebras and the invariant subspace problem, operator algebras and group representations as well as applications to mathematical physics are presented. The research contacts of the Department of :viathematics of INCREST with the National Committee for Science and Technology of Romania provided means for developing the research activity in mathematics; they represent the generous framework of these meetings too. It is our pleasure to acknowledge the financial support of UNESCO which also contributed to the success of this meeting. We are indebted to Professor Israel Gohberg for including these Proceedings in the OT Series and for valuable advice in the editing process. Birkhauser Verlag was very cooperative in publishing this volume. Camelia Minculescu, Iren Nemethi and Rodica Stoenescu dealt with the difficult task of typing the whole manuscript using a Rank Xerox 860 word processor; we thank them for this exellent job.