Project READ, an alternative language arts program for low-performing elementary students (grades 1 through 8), has been underway for 2 years in the Portland (Oregon) Public Schools. Targeted students include those identified as learning disabled and those who have auditory and/or visual memory problems. This report describes the second-year (1987-88) implementation of Project READ. The curriculum, which emphasizes phonics, comprehension, and written expression, is delivered through direct instruction strategies with a focus on multi-sensory activity learning. Teachers receive inservice training in the instructional strategies through weekly classroom demonstrations. A total of 1,279 students were identified for participation in Project READ in 1987-88 (including 524 students in grades 3 through 5, and 294 students in grades 6 through 8). Third through eighth-grade student achievement growth was measured by fall and spring scores on the Portland Achievement Levels Tests in reading and language usage. Results indicate gains were made in both reading and language usage at grade 5, and language usage gains were also educationally important for grades 7 and 8. There were no important differences in achievement growth for students who were in the project for 2 years; both first- and second-year Project READ students made gains in reading and language usage that were comparable to the mean grade-level gains of the district as a whole. Teacher survey data were also positive. Nine tables and one graph are included. An overview of Project READ; and the Project READ Observation Checklist, Concerns Questionnaire, and Accuracy/Mastery Test are appended. (TJH)