This document presents the third year evaluation of the CAI/Cooperative Learning Project. The purpose of this project is to develop a national model for integrating computer-assisted instruction (CAI) through an integrated learning system. The project is a collaborative effort by two Pennsylvania school districts, Hatboro-Horsham and Pittston Area, and Research for Better Schools (RBS). This report begins with an introduction that provides background information on the project and the evaluation questions addressed by the study. Next, the evaluation design and procedures are described including design, student sample, instrumentation, and data collection and analysis. The findings of the evaluation questions for year three are presented in two sub-sections: program implementation and program outcomes. Finally, general conclusions which relate to the project's evaluation questions as well as implications of the evaluation's findings and conclusions are presented. Included in the appendix are the surveys used in the evaluation as well as the mean survey responses for rated items. (JLB)