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Cannabinoid receptors have recently been identified in both the CNS and the periphery, and endogenous ligands for these receptors (anandamides) have been found in the CNS. Both natural and synthetic cannabinoids have promising therapeutic effects in various clinical conditions, including neurological disorders such as multiple sclerosis and Huntington's chorea. As a result of these findings, rapid progress in this new and exciting field can be expected over the next few years. This will further the understanding of the physiological role of the anandamide-cannabinoid system and allow the development of new pharmacological tools and clinically useful drugs.