We study the off-diagonal blocks in the M(atrix) model that are suppos
ed to correspond to open strings stretched between a Dp-brane and a Dp
'-brane. It is shown that the spectrum, including the quantum numbers,
of the zero-modes in the off-diagonal blocks can be determined from t
he index theorem and unbroken supersymmetry, and indeed reproduces str
ing theory predictions for p-p' strings. Previously the matrix descrip
tion of a longitudinal fivebrane needed the introduction of extra degr
ees of freedom corresponding to 0-4 strings by hand. We show that they
are naturally associated with the off-diagonal zero-modes, and the su
persymmetry transformation laws and low-energy effective action postul
ated for them are now derivable from the M(atrix) theory. (C) 1998 Els
evier Science B.V.