Describes how new heat and mass transfer technology has been applied to air conditioning. A lithium bromide solution is used to dehydrate and cool outside air prior to its injection into a conditioned environment. The air is then heat exchanged and exhausted to the outside. The entire process occurs within an ambient-pressured and inexpensive heat exchanger. Water removed from the air by the desiccant is efficiently separated from the desiccant by an energy-reuse generator. To date the liquid desiccant air conditioner has been extensively tested as an air cooler. With small modifications, the system will operate as a heat pump.KEYWORDS: Air conditioning, desiccants, lithium bromide, heat pumps