The theory of artificial neural networks has been successfully applied to a wide variety of pattern recognition problems. In this theory, the first step in computing the next state of a neuron or in performing the next layer neural network computation involves the linear operation of multiplying neural values by their synaptic strengths and adding the results. Thresholding usually follows the linear operation in order to provide for nonlinearity of the network. In this paper we discuss a novel class of artificial neural networks, called morphological neural networks, in which the operations of multiplication and addition are replaced by addition and maximum (or minimum), respectively. By taking the maximum (or minimum) of sums instead of the sum of products, morphological network computation is nonlinear before thresholding. As a consequence, the properties of morphological neural networks are drastically different from those of traditional neural network models. The main emphasis of the research presented here is on morphological bidirectional associative memories (MBAMs). In particular, we establish a mathematical theory for MBAMs and provide conditions that guarantee perfect bidirectional recall for corrupted patterns. Some examples that illustrate performance differences between the morphological model and the traditional semilinear model are also given.