We present a nonperturbative lattice formulation of noncommutative Yang-Mil
ls theories in arbitrary even dimension. We show that lattice regularizatio
n of a noncommutative field theory requires finite lattice volume which aut
omatically provides both an ultraviolet and an infrared cutoff. We demonstr
ate explicitly Morita equivalence of commutative U(p) gauge theory with p .
n(f) flavours of fundamental matter fields on a lattice of size L with twi
sted boundary conditions and noncommutative U(1) gauge theory with n(f) spe
cies of matter on a lattice of size p L with single-valued fields. We discu
ss the relation with twisted large N reduced models and construct observabl
es in noncommutative gauge theory with matter. (C) 2000 Elsevier Science B.
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