The Asset Management in Planning and Operations Peer Exchange was held on September 7-8, 2004. It was sponsored by the Federal Highway Administration (FHWA) and hosted by the Transportation Research Board (TRB). Asset Management (AM) in planning and operations was selected as the peer exchange focus because of the expanding role of AM as a comprehensive approach to managing agency resources and transportation systems. In addition, the benefits associated with the application of AM principles underscored AM as an area of critical importance to the transportation field. The goal of the AM peer exchange was to gather additional information about the state of the practice and to identify research needs and potential areas for innovation. Lance Neumann, Cambridge Systematics, Inc., began the peer exchange with a brief overview of available AM resources and observations from state department of transportation (DOT) implementation of AM. Kirk Steudle, MI DOT, gave an update on the AASHTO subcommittee on Asset Management. Peer exchange participants applauded the efforts of the AASHTO subcommittee but encouraged the inclusion of cities, counties, and metropolitan planning organizations in the effort to expand the adoption of AM practices. Dave Geiger, FHWA Office of Asset Management, discussed recent efforts to further integrate AM principles into existing FHWA offices and reported on the FHWA-supported AM education efforts. Finally, Sue McNeil, University of Illinois at Chicago, reported on recent TRB Asset Management Committee activities. This report serves to document and further distribute the insights raised during the meeting. To facilitate discussion, each participant was asked to answer a set of questions before coming to the peer exchange. The participant answers to the AM questions are contained in Section 2 of this report along with a summary of the written responses. Section 3 presents the key themes discussed, notable agency accomplishments, and potential areas for innovation. The appendix contains a list of peer exchange attendees.