Aider Ya. BULGAKOV Mathematical Depart. Selcuk University KONYA, TURKEY e-mail: bulgk@trselcuk.bitnet Algorithm for Solving Riccati Matrix Equation with Guaranteed Accuracy Abstract Speaking about the algorithms with guaranteed accuracy we mean such algorithms which result either in the solution of the problem with all true digits or in detecting its ill-condition. This scientific direction is presented by S.K.Godunov, U.Kulisch, A.J.Laub, G.W.Stewart, L.N.Trefethen and others. The paper presents the algorithm for solving Riccati matrix equation based on the solution of the two point boundary problem. The algorithm includes the series of orthogonal transformations of the matrix made up of the Riccati equation coefficients. As a result we obtain the system of equations whose condition is not worse than the condition of the Riccati matrix equation. As a mesure of condition we use four numerical characteristics which are the norms of the solution of the four matrix equations: the initial and dual equations and two Lyapunov matrix equations. This characteristics is the development of the notion of the quantity of stability parametre suggested by author (1980). The parametre is equivalent to the notion of the distance from unstable matrices ( C. Van Loan) but is more effective in computer realization. The similar parametre was suggested independently by Eising (1984). At present such parametres found application in the Stability Theory and in the Automatical Control Theory. A complete analysis of the influence of round-off errors and uncertainties in the data has been made. The analysis has shown that the algorithm is as fast as the known algorithm of the sign-function type but is more stable.