The program contributed to better understanding of bend loss mechanisms in optical fibers. This is an important area that impacts telecommunication and fiber optic sensor systems. A novel structure called SMS was introduced that enhances performance of microbend sensors. This technology was further developed in highly bend restive system suitable for use in photonics components. We also successfully concluded research in the applications of FMCW techniques for methane on other gases detection. Precision balancing and controlled de-balancing of fiber optics interferometers were also studied under this program. A new balancing/de-balancing technique was developed that enables for range of applications of low coherence interferometry in practical systems (optical path-length difference of an arbitrary fiber optic interferometer can be brought down below 5 um). Biomedical sensors were the next area of our investigation during this period. We usefully demonstrated miniature pressure sensors with the diameter of only 125um for the biomedical pressure range. This sensor was fabricated by application of original micro-machining technique that allowed for surface treatment of optical fiber tip. The polymer membrane attached to micro-machined fiber tip formed Fabry-Perot interferometer. The program also supported development of fiber optic road sensor (axle detectors) that showed promising results and possibility for near future practical commercialization. In the remote system control a review and analysis of field buses and Lonworks technology was carried out as a joint solution for designing, realization, implementation and maintenance of supervisory networks. Control of electric energy counters on Lonworks network was realized and a debugging method for LON interface software used for quality control in energy counters production was developed. Using LON Webserver, a remote control of intelligent house was carried out. A connection between industrial automation systems and MATLAB software was realized by means of OPC interface. Modern methods in fault detection and analysis are based on analytic redundance. Approaches such as parameter estimation, observers and parity space were closely examined where a new fault detection method based on nonlinear observers and speed linearization was obtained. With experiments carried out on laboratory heat exchanger, fluid leakage without level measurement was successfully detected. Suggested method of decomposing complex fuzzy systems into many simple fuzzy systems in combination with fuzzy sets theory is used for solving many technological and industrial problems. Principles of fuzzy modelling were used to develop an optimal model of steam-generator process, control of electromagnetic suspension model and fuzzy system for synergic parameter adaptation of MIG/MAG arc welding process. All mentioned technologies are a part of advanced scientific and technological fields which are a matter of intensive research in the world.