Abstract: An algorithmic solution procedure for solving the heat exchanger network synthesis problem is presented in this paper. A superstructure representation of the problem is established, and the addressed problem is formulated as amixed-integer nonlinear programming(MINLP) problem. An example is successfully solved with the MINLP algorithm developed in Part(I) of this paper. The simultaneous structural and parametric optimization is the main advantage of this solution procedure over some published procedures.