An Ashkin-Teller neural network, allowing for two types of neurons is considered in the case of low loading as a function of the strength of the respective couplings between these neurons. The storage and retrieval of embedded patterns built from the two types of neurons, with different degrees of (in)dependence is studied. In particular, thermodynamic properties including the existence and stability of Mattis states are discussed. Furthermore, the dynamic behaviour is examined by deriving flow equations for the macroscopic overlap. It is found that for linked patterns the model shows better retrieval properties than a corresponding Hopfield model.One of the best known physical models for neural networks is the Hopfield model [1]. In theoretical investigations of network properties, e.g., the retrieval of learned patterns, it plays a similar role as the Ising model does in the theory of magnetism. Extensions of this model to multi-state neurons have received a lot of attention recently (see, e.g., [2] -[5] and the references cited therein). Thereby the ability to store and retrieve so-called grey-toned and coloured patterns has been investigated.In this work we consider another extension of the Hopfield model to allow for multi-functional neurons. The specific model we have in mind is the neural network version of the Ashkin-Teller spin-glass ([6]-[9]). Indeed, on the one hand the Ashkin-Teller model has two different kinds of neurons (spins) at each site interacting with each other. This allows us to interprete this model as a neural network with two types of neurons having different functions. On the other hand, this Ashkin-Teller neural network (ATNN) can be considered as a model consisting out of two interacting Hopfield models.We expect the behaviour of the ATNN to be different from the one of the Hopfield model in a non trivial way. One of the things we want to find out, e.g., is whether this (four-neuron) interaction between the two types of neurons can improve the retrieval process for embedded patterns built from these two types of neurons. We will see, indeed, that for a particular choice of this interaction term the retrieval quality of the embedded patterns is very high in comparison with a corresponding Hopfield model. Therefore, independent of the possible biological relevance of this model, if any, such a study is interesting from the pure physical point of view.In this work we consider both the thermodynamic and dynamic properties of this model in the case of loading of a finite number of patterns.The rest of this paper is organized as follows. In section 2 the ATNN model is introduced. Section 3 discusses the methods used for analyzing both the equilibrium properties and the dynamics of the model. In particular, fixed-point equations as well as flow equations for the relevant macroscopic overlap order parameters are derived. In section 4 numerical solutions of these equations are discussed for a representative set of network parameters. The retrieval properties of embedded patterns with different...