HyperClass, a system which provides collaborative distance learning using a 3D virtual space is presented. This system is based on HyperReality, a concept which combines virtual reality with physical reality. The current prototype system could be operated on low-speed workstations, and utilizes internet connections. A classroom is created inside a shared 3D virtual space, and a teacher and student(s) at distant locations (in reality, their avatars) are brought together. 3D objects could be introduced into HyperClass, enabling collaborative tasks such as constructing PC's and exhibiting and handling ancient artifacts from various viewpoints, both interactively and intuitively. Experimental use between Japan, New Zealand and Australia showed its effectiveness, and proved that this system could be used as an application for transoceanic connections.