The School District of Philadelphia, through its Prescriptive Educational Approach to Children with Handicaps (PEACH) Project, funded under E.S.E.A. Title VI-B, provided diagnostic, referral, and prescriptive educational services for preschool children (between 3 and 4.7 years). Priority was given to those children most severely handicapped and closest to school age. A public awareness campaign was conducted to locate and identify handicapped children and to inform parents of the services available. Children were evaluated by a multidisciplinary team of specialists; an Individual Education Program was then written. The staff assumed responsibility for finding an appropriate placement for each child diagnosed as handicapped, in a preschool agency-sponsored program; home instruction; a Family Service program; or the Preschool Speech and Hearing program. Six of the seven major objectives of the PEACH program were fully implemented. Problems included the cumbersome manual system of storing data on the children, and the low staff productivity in handling cases. Extensive information is provided regarding goal accomplishment, and a large number of memoranda, press releases, forms, and activity reports are appended. (Author/CTM)