In this paper we propose a model for collaboration between engineers in a distributed environment based on a suite of specialized computer tools. The system is built around the distributed virtual reality system DIVE that has been customized for interoperability with existing CAD systems. Other tools supporting the information exchange process in a product development project include audio/video conferencing software, shared workspace systems for document sharing, application sharing tools, shared whiteboard applications and more. The paper discusses the components of the collaboration environment both from a technical standpoint as well as in respect to usability issues.