The Montgomery County Public Schools Computer Assisted Instruction (CAI) Program began in 1968, was federally funded for its first three years, and since 1971 its activities have been supported through local funds and an outside grant covering the lease of the computer for the project. During the last three years validated CAI materials developed during the first phase of the project were placed in classrooms, and evaluation studies were undertaken. Although small instructional packages were developed during this period, most of the emphasis was on implementation of more than 40 modular instructional packages. CAI capabilities were extended to a junior high school and to a first grade classroom at one elementary school. The instructional objectives and CAI applications for each grade level and subject area are described in this report, as are the evaluation findings and suggestions for further research and development. Some comments on possible future directions for CAI in public schools are also included. (DGC)