Field trials of the Lincoln Training System (LTS-3) at Keesler Air Force Base were completed. Fifteen lessons on the material covered in the fifth week of an electronics course were prepared and used. Students using the LTS-3 materials learned slightly better than pupils who received conventional instruction, lower aptitude students performed well, and there was a 37% savings in time. Thus, despite higher capital costs, overall operating expenses can be reduced, and the system is cost effective. Therefore, planning for full engineering development and operational test of a production prototype system (LTS-4), in which the new training medium will be used for an entire course of instruction, was undertaken. Extensive development of lesson materials and the installation of microfiche production facilities at Keesler Technical Training Center were recommended. Hardware development activities during the quarter included: 1) microfiche selector development, 2) audio reader system development, 3) audio channel experiments, 4) data channel development, 5) a survey of high-resolution films, 6) the assembly of a system self-processor, and 7) the development of self-processor software. (Author/LB)