The reaction of 5-cyclooctene-1,2-dione with 1,2-diaminomaleonitrile, produces 5,6,9,10-tetrahydrocycloocta[b]pyrazine-2,3-dicarbonitrile which was easily oxidized cleanly, under heterogeneous conditions by a combination of KMnO4, CuSO4•5H2O, t-BuOH in CH2Cl2 and water, to give 7-hydroxy-8-oxo-5,6,7,8,9,10hexahydrocycloocta[b]pyrazine-2,3-dicarbonitrile. This 2-hydroxy-ketone undergoes cyclocondensation with 1,2-diamines in hot acid acetic to furnish cyclooctane products with quinoxaline or pyrazine rings in a linear array, in good yields,