Square matrices are shown to be diagonalizable over all known classes
of (von Neumann) regular rings. This diagonalizability is equivalent t
o a cancellation property for finitely generated projective modules wh
ich conceivably holds over all regular rings. These results are proved
in greater generality, namely for matrices and modules over exchange
rings, where attention is restricted to regular matrices. (C) 1997 Els
evier Science Inc.