The dynamics of a first-order cellular neural network with delay has been studied in this paper- By using the delay as a bifurcation parameter, the Hopf bifurc ations are proved- Furthermore, by choosing suitable parameters and delay, chaot ic behaviour has been observed- Computer simulations, as well as Lyapunov ex ponent, are presented to support our results- Due to the simple structure of thi s network, it can serve as a chaos-generator in practice-