In earlier work, a novel open absorption cycle was proposed, capable of producing both cooling and dehumidification for air conditioning, utilizing low-grade heat. The system, referred to as DER (Dehumidifier-Evaporator-Regenerator), uses ambient air in conjunction with an absorbent solution: the air is dehumidified and then employed to produce chilled water in an evaporative cooler. Alternatively, a portion of the dehumidified air may be used directly for air conditioning purposes. The system thus has the potential to provide both cooling and dehumidification in variable ratios, as required by the load. Computer simulations and theoretical investigations were carried out to analyze and predict the performance of the system. The objective of the present study has been to construct a laboratory system to test the concept, identify problems and carry out preliminary design optimization. The characteristic performance of individual components, analyzed theoretically in the simulation, was studied experimentally. Measurements have provided much-needed realistic data about heat and mass transfer coefficients. The performance of the system has been studied under varying operating conditions. The paper describes the operation of the experimental system and presents the measured data and the resulting transfer coefficients.