Lithographically defined microelectrode arrays now permit high-density recording and stimulation in the brain and are facilitating new insights into the organization and function of the central nervous system. They will soon allow more detailed mapping of neural structures than has ever before been possible, and capabilities for highly localized drug-delivery are being added for treating disorders such as severe epilepsy. For chronic neuroscience and neuroprosthesis applications, the arrays are being used in implantable microsystems that provide embedded signal processing and wireless data transmission to the outside world. A 64-channel microsystem amplifies the neural signals by 60 dB with a user-programmable bandwidth and an input-referred noise level of 8$\mu{\hbox{V}}_{\rm rms}$before processing the signals digitally. The channels can be scanned at a rate of 62.5 kS/s, and signals above a user-specified biphasic threshold are transmitted wirelessly to the external world at 2 Mbps. Individual channels can also be digitized and viewed externally at high resolution to examine spike waveforms. The microsystem dissipates 14.14 mW from 1.8 V and measures 1.4$\times$1.55 cm$^2$.