  We conjecture that M-theory compactified on an ALE space (or K3) is described
by 0-branes moving on the ALE space. We give evidence for this by showing that
if we compactify another circle, we recover string theory on the ALE space.
This guarantees that in the large N limit, the matrix model correctly describes
the force law between gravitons moving in an ALE background. We also show the
appearance in M(atrix) theory of the duality of M-theory on K3 with the
heterotic string on a three-torus.
