CENTRE DE MATHEMATIQUES APPLIQUEES C.M.A.P. An improved elliptic regularity result for a composite medium with ``touching'' fibers Eric BonnetierMichael Vogelius In this paper we consider the elliptic equation div(a grad u) = 0 in a two dimensional domain Omega, which contains a finite number of circular inhomogeneities (cross-sections of fibers). The coefficient, a, takes on two constant values, one on all the inhomogeneities and one on the part of Omega which lies outside the inhomogeneities. A number of the inhomogeneities may possibly touch, and in spite of this we prove that any variational solution u (with sufficiently smooth boundary data) has a bounded gradient. For this very interesting, particular type of coefficient our result improves a classical regularity result due to DeGiorgi and Nash, which asserts that the solution is in the H\"older class C-gamma for some positive exponent gamma The whole paper is available as a compressed Postscript file by internet procedure FTP anonymous on host barbes.polytechnique.fr ( 129.104.4.100) in the directory pub/RI/1998 under the name bonnetier_vogelius_375.mars.ps or by Netscape or any other www client via the CMAP www server http://www.cmap.polytechnique.fr