The concept underlying this performance contract program was based on maximizing the time students spend actively participating in learning activities and providing them with direct and immediate feedback or reinforcement. Continuous diagnosis and prescription were utilized to select materials and give intensified instruction by adjusting the content, level, and learning rate for each pupil. Materials were constantly manipulated and modified for self-directing and self-correcting experiences. Selected to participate in the project were 250 students from two schools which had a major population from black, low socio-economic families. All of the students were to meet the criteria of being more than one year retarded in reading, with an IQ above 75. Involved personnel took part in a week of pre-service activities, with the actual instruction of students lasting approximately six months. Comparison of pre- and post-test results indicated that the achievement gains were significant and encouraging: 39% of the pupils gained 0.6 years or more, and another 39% gained from 0 to 0.5 years. Findings of a follow-up study and a list of references are included. (AW)