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This area treats of various models for rewrite systems with bound variables. It has actually 3 parts. First, we pursue the work on functional models, i.e. optimal reductions in the lambda calculus, sequentiality and axiomatic rewriting systems. Secondly, we consider new models for concurrency, ie action calculi and the tile model. Finally, we treat of the use of rewrite rules as a model for the optimisation of concurrent programs.