This quarterly report on the Kailua Intermediate School's Excellence in Education Project provides information about the status of the project's four components, success of the project, replication of the project in other schools, and the project budget. The four component areas described include the skills laboratory, Homework Assist Program, U.S. Bicentennial, and the math skills component. Although the project ended in June, 1987, efforts to upgrade the basic skills program at Kailua Intermediate continue. Appendices provide a bibliography of print and film learning materials, descriptions of learning activities and games, a U.S. Constitution test, an eighth-grade group's video script on the 13th amendment to the Constitution, and 1987-1988 guidelines for the Mathematics Skills Laboratory (MSL). These guidelines focus on the rationale of the laboratory, its organization and management, evaluation of the MSL, and the lab budget. Appended to the laboratory guidelines are lists of MSL components, curriculum outlines and flowcharts, lists of equipment and textbooks, and student schedule and record sheets. (RH)