This is an evaluation of Phase Two of the Federal Library Network Prototype Project which involved the use of telefacsimile and slow-scan television for interlibrary loan and communication activities among federal libraries from July 1978 to March 1980. The evaluation procedure included site visits to participating libraries, analysis of data recorded by participating libraries on transaction forms, interviews with 38 library staff members, a literature review, and discussions with experts. Analysis of the transaction data shows that interlibrary loans accounted for 75 percent of the activity, with correspondence responsible for another 15 percent. Patrons found the information helpful approximately 72 percent of the time. Seventy percent of their requests were for journal articles, with the material available on time 60 percent of the time. Library staff felt that the project did increase contact with other libraries, and 40 percent said they would continue interlibrary loans with these libraries. However, librarians also felt the project increased the work load and that it was unfavorable from that point of view. Overall, the telefacsimile, while useful, seemed to impose a labor-intensive situation on libraries and future trials of slow-scan television in a wider range of contexts are recommended. (Author/MER)