  We study Yang Mills theory in 2+1 dimensions, as an array of coupled
(1+1)-dimensional principal chiral sigma models. This can be understood as an
anisotropic limit where one of the space-time dimensions is discrete and the
others are continuous. The $SU(N)\times SU(N)$ principal chiral sigma model in
1+1 dimensions is integrable, asymptotically free and has massive excitations.
New exact form factors and correlation functions of the sigma model have
recently been found by the author and P. Orland. In this paper, we use these
new results to calculate physical quantities in (2+1)-dimensional Yang-Mills
theory, generalizing previous $SU(2)$ results by Orland, which include the
string tensions and the low-lying glueball spectrum. We also present a new
approach to calculate two-point correlation functions of operators using the
light glueball states. The anisotropy of the theory yields different
correlation functions for operators separated in the $x^1$ and
$x^2$-directions.
