A study investigated whether the interrelatedness of parents' storybook reading to children and their developing competence in oral and written language carried over into out-of-home care. Subjects, about 40 children ranging in age from 18 to 36 months in 4 representative daycare centers and their 4 adult teachers, were observed during planned reading events over a 12-week period. Results indicated that storybook readings were not viewed as opportunities for shared language experiences. Storybook readings were a regular part of the curriculum and children were enthusiastic about the activity, but they were neither invited to share their ideas about the story nor encouraged to retell the story. (Six tables and a chart of data are included; 28 references are attached, as well as appendixes including parent questionnaires, report forms, and specific descriptions of the reading environments.) (RS)