Lattice current algebras were introduced as a regularization of the left- and
right moving degrees of freedom in the WZNW model. They provide examples of
lattice theories with a local quantum symmetry U_q(\sg). Their representation
theory is studied in detail. In particular, we construct all irreducible
representations along with a lattice analogue of the fusion product for
representations of the lattice current algebra. It is shown that for an
arbitrary number of lattice sites, the representation categories of the lattice
current algebras agree with their continuum counterparts.Comment: 35 pages, LaTeX file, the revised version of the paper, to be
published in Commun. Math. Phys. , the definition of the fusion product for
lattice current algebras is correcte