In 1988, the California legislature provided funding for development of two Middle College High School (MCHS) projects, one at Contra Costa College (CCC), and another one at Los Angeles Southwest College (LASC). The MCHS is a high school program on a college campus designed to meet the needs of high risk urban youth with college potential. Through visible peer models, small classes, and superior academic and support services, the MCHS's seek to reduce high school dropout rates, improve academic performance and self-esteem, and increase the likelihood of college attendance. The curriculum offered at both sites consists of basic courses for high school graduation in the college preparatory track, supplemented by college courses and high school electives. The role of MCHS teachers is that of teacher-counselor, in which the teacher and student-advisees meet to discuss both school and personal problems. The project also has a career education and internship component, allowing students to relate their schooling to work opportunities. Despite budget problems, third-year enrollments increased by 45% at CCC, and by 21% at LASC, for a total of 139 and 242 students respectively, and student-to-teacher ratios were 28-to-1 at CCC, and 24-to-1 at LASC. Preliminary outcomes of the projects indicate that: (1) students' grades and attendance improved substantially beginning with their first year at MCHS; (2) most students' historical pattern of progressively poorer academic performance and increased absenteeism was stopped during the first year of MCHS; and (3) generally, performance declined for students returning for their second and third years, but these declines were less for the program's second returning class than for the first. (PAA)