The Euro-Arab Management School is an academic institution established by the European Union and the Arab League. The School is a 'virtual organization:' it does not operate bricks and mortar classrooms. Instead, programs are offered in an innovative manner which combines Web-based learning with local tutoring. The case deals with the concept of management of a virtual organization, and introduces some of the benefits and challenges of virtual organizations. The case also deals with issues of the future of education in the age of the Internet.