This paper discusses a systematic strategy for developing oral skills from situational readings in a first year foreign language course. Aspects considered are: sequencing readings into the course, grammar component, vocabulary component, student preparation, outline of two day instructional treatments, the role of the teacher, and student tension. This approach leads students gradually from simple comprehension of situational reading material, often containing dialogue, through reinforcement of previously learned grammatical structures, expansion and review of students' active vocabulary, listening comprehension by means of paraphrasing, and pronunciation and intonation practice. The process culminates in a successful "Nacherzahlung," or retelling of the story. Once the"Nacherzahlung" has been completed, students are prepared to relate their own interests, experiences, or desires which are related to the situation depicted in the readings. Suggestions for the successful implementation of this strategy are contained in the summary remarks. (Author/AMH)