HadronPhysics2 (SPHERE) under the 7th Framework Programme of EU. We acknowledge financial sup-

Abstract Hypernuclear research will be one of the main topics addressed by the PANDA experiment at the planned Facility for Anti-proton and Ion Research FAIR at Darmstadt, Germany. A copious production of Ξ-hyperons at a dedicated internal tar-get in the stored anti-proton beam is expected, which will enable the high-precision γ-spectroscopy of double strange systems for the first time. In addition to the general purpose PANDA setup, the hypernuclear experiments require an active secondary tar-get of silicon layers and absorber material as well as high purity germanium (HPGe) crystals as γ-detectors. The design of the setup and the development of these detec-tors is progressing: a first HPGe crystal with a new electromechanical cooling system was prepared and the properties of a silicon strip detector as a prototype to be used in the secondary target were studied. Simultaneously to the hardware projects, de-tailed Monte Carlo simulations were performed to predict the yield of particle stable hypernuclei. With the help of the Monte Carlo a procedure for ΛΛ-hypernuclei iden-tification by the detection and correlation of the weak decay pions was developed