  Recent results of open charm and beauty production in electron proton
scattering at HERA are presented. In photoproduction, the measured cross
sections for charm exceed fixed order NLO QCD calculations. Experimental
evidence supports the hypothesis that a significant fraction of photoproduction
events with charm can be described by resolved photon processes, where the
charm quark is a constituent of the resolved photon. In deep inelastic
scattering the NLO calculations give in general a fairly reasonable description
of the observed charm cross sections. The measurements of the structure
function $F_2^{cc}$ show that, at large photon virtualities and low x, the
events with charm constitute a major part of the total ep cross section. The
beauty cross sections both in photoproduction and in DIS exceed NLO
predictions.
