diff --git a/apps/pacerdemo1/Makefile b/apps/pacerdemo1/Makefile
new file mode 100644
index 0000000..0c9cde2
--- /dev/null
+++ b/apps/pacerdemo1/Makefile
@@ -0,0 +1,62 @@
+# File:   Makefile
+# Author: M. P. Hayes, UCECE
+# Date:   12 Sep 2010
+# Descr:  Makefile for pacerdemo1
+
+# Definitions.
+CC = avr-gcc
+CFLAGS = -mmcu=atmega32u2 -Os -Wall -Wstrict-prototypes -Wextra -g -I../../drivers/avr -I../../drivers -I../../utils
+OBJCOPY = avr-objcopy
+SIZE = avr-size
+DEL = rm
+
+
+# Default target.
+all: pacerdemo1.out
+
+
+# Compile: create object files from C source files.
+pacerdemo1.o: pacerdemo1.c ../../drivers/avr/pio.h ../../drivers/avr/system.h ../../drivers/led.h ../../utils/pacer.h
+	$(CC) -c $(CFLAGS) $< -o $@
+
+pio.o: ../../drivers/avr/pio.c ../../drivers/avr/pio.h ../../drivers/avr/system.h
+	$(CC) -c $(CFLAGS) $< -o $@
+
+system.o: ../../drivers/avr/system.c ../../drivers/avr/system.h
+	$(CC) -c $(CFLAGS) $< -o $@
+
+timer.o: ../../drivers/avr/timer.c ../../drivers/avr/system.h ../../drivers/avr/timer.h
+	$(CC) -c $(CFLAGS) $< -o $@
+
+led.o: ../../drivers/led.c ../../drivers/avr/pio.h ../../drivers/avr/system.h ../../drivers/led.h
+	$(CC) -c $(CFLAGS) $< -o $@
+
+pacer.o: ../../utils/pacer.c ../../drivers/avr/system.h ../../drivers/avr/timer.h ../../utils/pacer.h
+	$(CC) -c $(CFLAGS) $< -o $@
+
+
+
+
+# Link: create output file (executable) from object files.
+pacerdemo1.out: pacerdemo1.o pio.o system.o timer.o led.o pacer.o
+	$(CC) $(CFLAGS) $^ -o $@ -lm
+	$(SIZE) $@
+
+
+# Create hex file for programming from executable file.
+pacerdemo1.hex: pacerdemo1.out
+	$(OBJCOPY) -O ihex pacerdemo1.out pacerdemo1.hex
+
+
+# Target: clean project.
+.PHONY: clean
+clean: 
+	-$(DEL) *.o *.out *.hex
+
+
+# Target: program project.
+.PHONY: program
+program: pacerdemo1.hex
+	dfu-programmer atmega32u2 erase; dfu-programmer atmega32u2 flash pacerdemo1.hex; dfu-programmer atmega32u2 start
+
+
diff --git a/apps/pacerdemo1/pacerdemo1.c b/apps/pacerdemo1/pacerdemo1.c
new file mode 100644
index 0000000..4525064
--- /dev/null
+++ b/apps/pacerdemo1/pacerdemo1.c
@@ -0,0 +1,52 @@
+/** @file   pacerdemo1.c
+    @author M.P. Hayes
+    @date   24 Sep 2013
+*/
+
+#include "system.h"
+#include "pacer.h"
+#include "pio.h"
+#include "led.h"
+
+/* Define paced loop rate in Hz.  */
+#define LOOP_RATE 1000U
+
+#define PERIOD_MS 20
+
+#define DUTY_MS 15
+
+#define TICK_PIO PD6_PIO
+
+int main (void)
+{
+    uint8_t tick = 0;
+
+    system_init ();
+
+    pacer_init (LOOP_RATE);
+    led_init ();
+
+    pio_config_set (TICK_PIO, PIO_OUTPUT_LOW);
+
+    /* Paced loop.  */
+    while (1)
+    {
+        /* Wait for next tick.  */
+        pacer_wait ();
+
+        pio_output_toggle (TICK_PIO);
+
+        tick++;
+        if (tick >= LOOP_RATE * PERIOD_MS / 1000)
+        {
+            tick = 0;
+            led_set (LED1, 1);
+        }
+        else if (tick == LOOP_RATE * DUTY_MS / 1000)
+        {
+            led_set (LED1, 0);
+        }
+    }
+
+    return 0;
+}