Part feature information is used to bridge the gap between design and manufacturing. Several approaches have been used to provide feature information from the CAD system. Of these, the feature-based design system is superior. However, feature information created by the system is limited to feature commands; the system is designed to be independent of the existing CAD system. Here, a two-state feature-based design (primitive design and feature design) concept is proposed. Using this, a designer can take full advantage of the CAD system and the feature-based design concept. A prototype system embedded in AUTOCAD is developed to test the success of the concept. Input is design intention, while outputs are the part's orthographic 3-view, IGES file, and feature information. Features created in the paper are classified into: Pre-defined features, base features, combined features and irregular features. The last three types are not pre-defined; they are extracted and derived during the design cycle. The algorithm for extraction and derivation is developed and discussed.