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The amount of control data flowing across modem communication networks is rapidly increasing. Huge streams of data are flooding the operation and maintenance center (OMC). Thus the operator needs a management system that converts these massive data storms to manageable magnitudes. To achieve this an intelligent alarm filtering system is required to interpret the data stream, thereby simplifying the decision-making process and shortening the operator's reaction time. Such an intelligent tool is the first step on the way to achieving knowledge-based network management. An event correlation tool, called Lucent Correlated Alarm Simulator (LUCAS) has been designed as a prototype for GSM networks. This paper gives an insight into the conception of the tool's architecture and in particular describes the algorithm used for the correlation engine.