This paper introduces a new algorithm for adaptively adjusting the structure of a multi-layer back-propagation network. The proposed algorithm belongs to the class of neuron generating strategies as opposed to the class of neuron pruning strategies. Initially a "small" multi-layer perceptron network is selected. The stabilized error is used as an index to determine whether the network needs to generate a new neuron or not. If after a period of learning the error is stabilized, but the error is larger than a desired value, then new neuron(s) is (are) generated. The new neurons are placed at locations that contribute most to the network error behavior through the fluctuation in their input weight vectors. Among the features of the new architecture are its improved performance and generalization capabilities compared to a standard fixed-structure back-propagation network. Application to an electroencephalogram (EEG) automatic epileptic seizure detection is presented to illustrate advantages and capabilities of the proposed algorithm. Using an actual data from five patients it is shown that the proposed approach correctly identifies all true seizures that are also identified by an expert physician. The new algorithm provides a reduction of 60-70% in the training epochs as compared to a back-propagation algorithm. Furthermore, it is shown that by utilizing a new training algorithm it is possible to reduce the false seizure detections to zero while resulting in a 5.1% error in identifying the true seizures. Copyright 1996 Elsevier Science Ltd