DIABCARD has developed the specification for the core of a Chip Card Based Medical Information System (CCMIS) for chronic diseases in ambulatory and hospital care. Diabetes was chosen as a typical chronic disease. A common European basic diabetes data set based on approved data sets was produced and validated. A demonstrator and a videotape showing key situations in the life of a patient with diabetes demonstrate the functionality of the chip card. Some acceptance studies have taken place. Small scale field are scheduled for this year. At the present stage specific functions deduced from the requirement analysis are being implemented into a prototype. DIABCARD will provide an instrument for assessing health care services, promote the links between health care providers and set up communication between the different levels of health care. It will thus improve the quality of care and the life of patients with chronic diseases.