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This paper describes the structure and operation of the Hearsay-I1speech understanding system by the use of a specific example illustrating the various stages of recognition. The system consists of a set of cooperating independent processes, each representing a source of knowledge. The knowledge is used either to predict what may appear in a given context or to verify hypotheses resulting from a prediction. The structure of the system is illustrated by considering its operation in a particular task situation: Voice-Chess. The representation and use of various sources of knowledge are outlined. Preliminary results of the reduction in search resulting from the use of various sources of knowledge are given.