The Steiner Tree Problem (STP) in graphs is a well-known NP-hard problem. I
t has regained attention due to the introduction of new telecommunication t
echnologies, such as ATM, since it appears as the inherent mathematical str
ucture behind multicast communications. In this paper, we present a tabu se
arch algorithm for the STP in graphs. The main feature of this algorithm is
a sophisticated strategy for quickly obtaining a very good solution and po
werful diversification mechanisms. Computational results on the benchmark p
roblems of the OR-Library, for which optimal solutions are known, indicate
that the proposed algorithm outperforms other recent heuristics. (C) 1999 J
ohn Wiley & Sons, Inc. Networks 34: 162-172, 1999.