A hybrid observer is described for estimating the state of an m > 0 channel, n-dimensional, continuous-time, distributed linear system of the forṁ x = Ax, yi = Cix, i ∈ {1, 2, . . . , m}. The system's state x is simultaneously estimated by m agents assuming each agent i senses yi and receives appropriately defined data from each of its current neighbors. Neighbor relations are characterized by a time-varying directed graph N(t) whose vertices correspond to agents and whose arcs depict neighbor relations. Agent i updates its estimate xi of x at "event times" t1, t2, . . . using a local observer and a local parameter estimator. The local observer is a continuous time linear system whose input is yi and whose output wi is an asymptotically correct estimate of Lix where Li a matrix with kernel equaling the unobservable space of (Ci, A). The local parameter estimator is a recursive algorithm designed to estimate, prior to each event time tj, a constant parameter pj which satisfies the linear equations w k (tj −τ ) = L k pj +µ k (tj −τ ), k ∈ {1, 2, . . . , m}, where τ is a small positive constant and µ k is the state estimation error of local observer k. Agent i accomplishes this by iterating its parameter estimator state zi, q times within the interval [tj − τ, tj), and by making use of the state of each of its neighbors' parameter estimators at each iteration. The updated value of xi at event time tj is then xi(tj) = e Aτ zi(q). Subject to the assumptions that (i) none of the Ci are zero, (ii) the neighbor graph N(t) is strongly connected for all time, (iii) the system whose state is to be estimated is jointly observable, (iv) q is sufficiently large and nothing more, it is shown that each estimate xi converges to x exponentially fast as t → ∞ at a rate which can be controlled.