Introduction. HEALTH ATTRIBUTES OF FUNCTIONAL FOODS. Reducing the Risk of Cardiovascular Disease. Reducing the Risk of Cancer. Functional Foods in the Control of Obesity. Nutrient Control of Immune Function. Dietary Factors Modulating the Rate of Aging. Mood and Performance Foods. Medical Foods. HEALTH FUNCTIONALITY OF FOOD COMPONENTS. Dietary Fiber. Special Physiological Functions of Newly Developed Oligosaccharides. Sugar Alcohols. Amino Acids, Peptides and Proteins. Vitamins for Optimal Health. Lactic Acid Bacteria as Promoters of Human Health. Nutrition of Microminerals and Trace Elements. Fatty Acids. Phytochemicals and Antioxidants. MARKET AND COMPETITION . Functional Foods in Japan. The Development of the Functional Food Business in the United Sates and Europe. The Potential Role for Functional Foods in Medicine and Public Health. The Role of Marketing Communication in the Introduction of Functional Foods to the Consumer. The Food Industry Role in Functional Foods. CONSUMER'S VIEWPOINT. Consumer's View on Functional Foods. FUTURE PROSPECTS. Future Prospects for Functional Foods