Firstly, net theory, which is a well established theory of distributed systems and processes [I] relies heavily on a graphical notation. One of the strengths of this theory is that many of the fundamental notions concerning concurrent systems and in particular, the dynamics of a concurrent systemcan be made transparent with the help of simple net diagrams and transformations of such diagrams. It is important to provide a solid formal foundation to this aspect of net theory and graph grammars appear to be the obvious tool for doing so. The second motivation is that in the study of concurrency problems that arise within the area of graph grammars [2] we think it is possible and fruitful to apply the concepts and techniques of net theory.