Feedforward neural networks (FNNs) are developed and implemented to classify a four-stage high pressure air compressor into one of the following conditions: baseline, suction or exhaust valve faults. These FNNs are used for the compressor's automatic condition monitoring and fault diagnosis. Measurements of 39 variables are obtained under different baseline conditions and third-stage suction and exhaust valve faults. These variables include pressures and temperatures at all stages, voltage between phase a and phase b, voltage between phase b and phase c, total three-phase real power, cooling water flow rate, etc. To reduce the number of variables, the amount of their discriminatory information is quantified by scattering matrices to identify statistical significant ones. Measurements of the selected variables are then used by a fully automatic structural and weight learning algorithm to construct three-layer FNNs to classify the compressor's condition. This learning algorithm requires neither guesses of initial weight values nor number of neurons in the hidden layer of an FNN. It takes an incremental approach in which a hidden neuron is trained by exemplars and then augmented to the existing network. These exemplars are then made orthogonal to the newly identified hidden neuron. They are subsequently used for the training of the next hidden neuron. The betterment continues until a desired accuracy is reached. After the neural networks are established, novel measurements from various conditions that haven't been previously seen by the FNNs are then used to evaluate their ability in fault diagnosis. The trained neural networks provide very accurate diagnosis for suction and discharge valve defects.