An investigation into the incidence of exercise induced pulmonary haemorrhage (EIPH) in thoroughbreds in Hong Kong was carried out between the 1981 and 1983 racing seasons. A total of 1039 post race endoscopic examinations were performed in 1982-1983 and the results indicated that 46.8 per cent of runners had EIPH. This was not statistically different from the percentage of horses showing EIPH during 1981-82 (46.9 per cent). As it had been postulated that dust, especially from straw, could be implicated in lung haemorrhage a proportion of horses were bedded on paper in the 1982-83 season. No significant differences could be demonstrated in the incidence of EIPH resulting from the use of paper bedding in preference to straw.