This project concerns the development of a class of versatile tools for applications in space, based on a new concept of mechanical power transmission. The transmission is capable of optimally matching a power source operating at a fixed angular speed to loads operating over a wide range of speeds. Continuous (infinite gear ratios) matching is achieved by a novel direct-drive method using no fluids or frictional clutches for energy coupling. IN addition, there are several other advantages which can be exploited for development of mechanical tools. The research and development described here is needed to make hardware improvements in the miniaturized transmission devices and integrate them into compact space tools for applications in robotics or space construction. A number of prototype tools incorporating this power transmission concept are envisioned.