Abstract. The need of true random number generators for many purposes (ranging from applications in cryptography and stochastic simulation, to search heuristics and game playing) is increasing every day. Many sources of randomness possess the property of stationarity. However, while a biased die may be a good source of entropy, many applications require input in the form of unbiased bits, rather than biased ones. In this paper, we present a new technique for simulating fair coin flips using a biased, stationary source of randomness. Moreover, the same technique can also be used to improve some of the properties of pseudo random number generators. In particular, an improved pseudo random number generator has almost unmeasurable period, uniform distribution of the letters, pairs of letters, triples of letters, and so on, and passes many statistical tests of randomness. Our algorithm for simulating fair coin flips using a biased, stationary source of randomness (or for improving the pro...