Numerical and experimental studies are presented for turbulent flows and heat transfer in annular channel with circumferential fins on the inner tube in a double pipe heat exchanger. Flow and heat transfer characteristics are periodically fully developed, and complex flow patterns are shown. Numerical calculations are executed by using modified TEACH-2E computer program based on the standard k-.epsilon. turbulence model. Mean velocity, turbulent kinetic energy, and Reynolds stress distributions are measured with the hot wire anemometer. Static pressures on the outer wall of the pipe are measured for three pitch-height ratios and several Reynolds numbers. Numerical predictions generally show reasonable results in comparison with experimental results. When the pitch-height ratio is about 5.0 and other geometric parameters are fixed in this paper, maximum heat transfer is achieved. Reattaching flow patterns appeared in this region. As the pitch between fins is increased beyond 5.0, mean Nusselt numbers are decreased and the pressure drop through one pitch almost remains.