This paper on electronic books (e-books) in the academic library begins by defining the e-book and presenting general information on developments in the e-book industry, including collections of e-books that are accessed through the Internet and electronic editions of print books that can be downloaded to a proprietary reading device. A list of e-book reading devices, along with links to their World Wide Web sites, is included. NetLibrary, an online e-book collection that is enjoying popularity in all types of libraries, is described. The problems and challenges that the e-book presents to a university library are addressed, including circulation, readability, bibliographic control, and administrative problems. The LSTA (Library Services and Technology Act)-funded Electronic Book Evaluation Project is summarized. (Contains 14 references.) (MES)