Description logics (also called terminological logics, or concept lang
uages) are fragments of first-order logic that provide a formal accoun
t of the basic features of frame-based systems. However, there are asp
ects of frame-based systems-such as nonmonotonic reasoning and procedu
ral rules-that cannot be characterized in a standard first-order frame
work. Such features are needed for real applications, and a clear unde
rstanding of the logic underlying them is necessary for principled imp
lementations. We show how description logics enriched with an epistemi
c operator can formalize such aspects. The logic obtained is a fragmen
t of a. first-order nonmonotonic modal logic. We show that the epistem
ic operator formalizes procedural rules, as provided in many knowledge
representation systems, and enables sophisticated query formulation,
including various forms of closed-world reasoning. We provide an effec
tive procedure for answering epistemic queries posed to a knowledge ba
se expressed in a description logic and extend this procedure in order
to deal with rules. We also address the computational complexity of r
easoning with the epistemic operator, identifying cases in which an ap
propriate use of the epistemic operator can help in decreasing the com
plexity of reasoning. (C) 1998 Elsevier Science B.V.