This paper reviews the developments in evolvable hardware systems presented at the First International Conference on Evolvable Systems (ICES 96). The main body of the review gives an overview of the 34 papers presented orally, splitting them into three broad groups according to whether they involve (1) evolving a fit solution to a problem as a member of a population of competing candidates, (2) evolving solutions that can individually learn from and adapt to their environments, or (3) the embryonic growth of solutions. We also review the discussion sessions of the conference and give pointers to related upcoming events.