The coalgebraic perspective on objects and classes in object-oriented programming is elaborated: objects consist of a (unique) identifier, a local state, and a collection of methods described as a coalgebra; classes are coalgebraic (behavioural) specifications of objects. The creation of a "new" object of a class is described in terms of the terminal coalgebra satisfying the specification. We present a notion of "totally specified" class, which leads to particularly simple terminal coalgebras. We further describe local and global operational semantics for objects. Associated with the local operational semantics is a notion of bisimulation (for objects belonging to the same class), expressing observational indistinguishability. AMS Subject Classification (1991): 18C10, 03G30 CR Subject Classification (1991): D.1.5, D.2.1, E.1, F.1.1, F.3.0 Keywords & Phrases: object, class, (terminal) coalgebra, coalgebraic specification, bisimulation 1. Introduction Within the object-oriente...