We study a new class of matrix model, formulated on a lattice, On each
site are N states with random energies governed by a gaussian random
matrix hamiltonian. The states on different: sites are coupled randoml
y. We calculate the density of and correlation between the eigenvalues
of the total hamiltonian in the large-N limit, We find that this corr
elation exhibits the same type of universal behavior we discovered rec
ently. Several derivations of this result are given. This class of ran
dom matrices allows us to model the transition between the ''localized
'' and ''extended'' regimes within the limited context of random matri
x theory.