A Finnish PACS project has been set up with the participation and financing of 13 university and central hospitals, the Medical Board of Finland, the Hospital League of Finland, the Post and Teleoffice of Finland and the Helsinki Telephone Company with the Medical Engineering Laboratory of the Technical Research Centre of Finland as the principal investigator. The project started in December 1988 and ended in December 1990. The project focused on the functional needs for PACS. The image production, archive sizes, network capacity and workstation requirements have been studied in a big university hospital. The results show that without compression the image archive size needs to be at least 10 TB. The network capacity requirement depends very much on the interactivity requirements. In normal situation less than 1 Mbit/s is needed, if the network is configured in an efficient way. In some cases, however, the speed requirement can be of the order of 100 Mbit/s. A proposal for a hospital-wide PACS network was made. Simple calculation rules to estimate the needed capacities were also developed.