An exact expression for the exchange kernel of time-dependent density-
functional theory, the frequency-dependent functional derivative of th
e exchange potential with respect to the density, is derived. The expr
ession is simple enough to be applied in practice. A simple and transp
arent derivation of the coupled Kohn-Sham equation of time-dependent d
ensity-functional theory is given. Modified coupled Kohn-Sham equation
s are presented that are especially well suited for an ''exact-exchang
e'' treatment of excitation energies, polarizabilities, and other line
ar response properties. (C) 1998 John Wiley & Sons, Inc.