Exception handling continues to be a challenging problem in object oriented system design. One reason for this is that today. software systems are getting increasingly more complex. Moreover, exception handling is needed in a wide range of application systems, sometimes requiring domain-specific models for handling exceptions. Also, concurrency, distribution, and code mobility add new dimensions to the existing challenges in this area. The integration of exception handling mechanisms in a design needs to be based on wellfounded principles and formal models to deal with the complexities of such systems and to ensure robust and reliable operation. It needs to be pursued at the very start of a design with a clear understanding of the ensuing implications at all stages, ranging from design specification, implementation, operation, maintenance, and evolution. This workshop was structured around the presentation and discussion of the various research issues in this regard to develop a common understanding of the current and future directions of research in this area.