M-theory suggests the large N limit of the matrix description of a col
lection of N Type IA D-particles should provide a nonperturbative form
ulation of heterotic string theory. In this paper states in the matrix
theory corresponding to fundamental heterotic strings are identified,
and their interactions are studied. Comments are made about analogous
states in Type IIA string theory, which correspond to bound states of
D-particles and D-eightbranes. (C) 1997 Published by Elsevier Science
B.V.