In the fall of 1985, 10 academy programs were established by the State of California as replications of the Peninsula Academies already operating in a local school district for four years. An academy is a modified high school program with the following specific elements, among others: (1) students with academic potential who are at risk of dropping out; (2) a school-within-a-school administrative structure for grades 10-12; (3) technical courses to provide students with job skills; and (4) support from local businesses. This report evaluates the academies' 1986-87 school year. Among the conclusions were the following: (1) the academy program model is capable of producing substantial positive effects on participating students, but developing an effective program is difficult; (2) attitude improvements among students were registered at most sites; (3) at three sites, program students registered significant improvements on objective measures of school performance; (4) the ability of the academy model to accomplish these outcomes is not limited to socially and economically congenial settings; (5) overall, the academies have been successful in helping students compile better academic records, but appear to have no significant effect on attendance and dropout rates; and (6) these findings are generally consistent with those determined in the 1985-86 evaluation of the programs. Recommendations are offered for program improvement and future evaluation. Tables illustrate the data. Appendices provide student outcomes by site, the text of the Academies Bill SB 605, and a multivariate analysis of program effects. (BJV)