This year-end evaluation report of the Chapter 1 Early Childhood Education (Preschool) Program in Portland (Oregon) Public Schools is a narrative supplement to the statistical forms used by Chapter 1 Education Consolidation Improvement Act (ECIA) evaluation and is organized into six sections: (1) introduction; (2) description of the program, including organization, characteristics of the student population, recruitment and attendance, facilities and learning materials, daily educational activities, and project costs; (3) evaluation methodology and findings, including language skills, numerical concepts, small motor skills, and social skills; (4) follow-up study of former program students in kindergarten and grade 3; (5) observations and comments; (6) summary and conclusions. The purpose of the preschool program is to provide educationally and economically disadvantaged children with the experiences needed to ameliorate the disadvantages resulting from their circumstances. The evaluation focuses on academic achievement, with attention to social and physical skills in preschool and kindergarten. At the preschool level, year-end evaluation results and observations during the year continue to show program improvements. Results for the last four years tend to show more noticeable gains, especially in basic skills, and observations tend to show more productive student involvement. The results of follow-up studies are mixed. The Record of Goals Mastery Form and the Student Rating Form are appended. (BAE)