Dear Colleagues- Continued MACHO/GMAN monitoring of event 98-SMC-1 has detected an ongoing deviation in the lightcurve. Event 98-SMC-1 Star ID 208.15683.4237 RA (J2000) 00:45:35.2 DEC (J2000) -72:52:34 V ~21.8 R ~21.7 The source star apparently underwent a caustic crossing due to a binary lens near 5 Jun, and is currently in the region between caustics, at a magnification of A ~9. Predictions of future event behaviour will be communicated as soon as they are known. Resolution of the second caustic crossing will prove invaluable in determining the proper motion of the lens, and therefore in estimating its distance. Spectral observations of the source star during the crossing should be possible if the source is highly magnified. This will assist in the above estimate, and directly probe the chemical composition of the SMC main sequence. Observers are urged to immediately contact macho@astro.washington.edu to coordinate photometric and spectroscopic observations.