Abstract: True improvements in large computer systems always come through their engineering devices. In AI, one of the fundamental differences from conventional computer science (such as software engineering and database technology) is its own established programming methodology. Rule-based programming has been dominant for AI research and applications. However, there are a number of inherent engineering problems with existing rule-based programming systems and tools. Most notably, they are inefficient in structural representation, and rules in general lack software engineering devices to make them a viable choice for large programs. Many researchers have therefore begun to integrate the rule-based paradigm with object-oriented programming, which has its engineering strength in these areas. This paper establishes the concepts of knowledge objects and intelligent objects based on the integration of rules and objects, and outlines an extended object model and an on-going project of the authors' design along this direction.