The Pacific State Hospital conducted a demonstration experiment with 12 severely and profoundly mentally retarded male adolescents, which concentrated on modifying disruptive, bothersome behaviors while developing basic work skills required for daily activity in sheltered workshops. The experiment provided an integrated program for an entire day, utilizing the concept that skills would transfer from a hospital environment to a community environment. The same daily schedule, work skills, and social behaviors sought during the project occur in sheltered workshops in the community. The concept of work and reward were utilized as behavior modifiers. Performance evaluations indicated success in achieving the objectives, and clinical observations indicated growth in the students' self-esteem and social awareness, but their adaptive behavior was still unacceptable for community standards. One of the problems was that their behavior deteriorated unless very structured rewarding circumstances were present. The program has been continued with a token economy being substituted for the tangible rewards, and an hour interval now occurs before reinforcement is given. The efficacy in providing a vocationally oriented program for severely retarded adolescents was demonstrated. (SB)