Inability to learn to read is the major reason students fail or experience learning problems in their early school years. In an effort to solve the problem, the Glenwood, Minnesota, school district has developed an identification/intervention program entitled "The Prevention of Early Reading Casualties" (PERC) to prevent academic failure in kindergarten through second grade children. The project objectives focus on how best to diagnose the learner's instructional needs, how the teacher can be better trained to meet student needs, and how the learning environment can be organized to facilitate a diagnostic-prescriptive instructional program. The major goal is to have children reading at their appropriate level by the end of third grade. The four program components are: (1) screening/identification, (2) diagnostic assessment/prescription, (3) instructional program/prereading and reading, and (4) classroom environment/management. Each of these four areas includes a series of specific performance objectives. The typical PERC classroom has a group listening station, individual listening centers for specific lessons, independent work centers, a library center, and three groups of children all working on basic reading instruction at the same time. (HTH)