ABSTRACT: Erickson and Kruschke (1998) provided a demonstration that in certain situations people will classify novel stimuli according to an extrapolated rule, even when the most similar training exemplar is an exception to the rule. This result challenged exemplar models. Nosofsky and Johansen (in press) have called this finding into question by offering an exemplar-based explanation for those data based on the perceptual features of the stimuli. Here, we describe the results of a new experiment that yields results similar to those found previously without the questionable perceptual features: Participants who learn to classify all the training stimuli have patterns of generalization that indicate a combination of rule and exemplar representation. ATRIUM, a hybrid rule and exemplar model (Erickson & Kruschke, 1998), is shown to account for these data much better than ALCOVE, an exemplar model (Kruschke, 1992). Moreover, the alternate exemplar explanation (Nosofsky & Johansen, in press) of the previous results cannot account for our new findings.