A simple laterally inhibited recurrent network that implements exclusi
ve-or is demonstrated. The network consists of two mutually inhibitory
units with logistic output function, each receiving one external inpu
t and each connected to a simple threshold output unit. The mutually i
nhibitory units settle into a point attractor. We investigate the rang
e of steepness of the logistic and the range of inhibitory weights for
which the network can perform exclusive-or.