  We use nonlinear realizations to describe the spontaneous breaking of $N=2$
supersymmetry to $N=1$ in four dimensions. We identify the Goldstone multiplet
with an $N=1$ chiral superfield, and show that chiral $N=1$ matter is
consistent with the partially broken $N=2$ supersymmetry. We find that the
chiral matter can be in any representation of the gauge group; no mirror
particles are required. We present the Goldstone action and the general
couplings to $N=1$ matter to the first nontrivial order in the scale of
symmetry breaking.
