The Adult Education Alternative Diploma project was conducted to develop an alternative program to the General Educational Development (GED) diploma program through which adult students in Pennsylvania could earn actual high school diplomas. During the year-long project, a competency diploma program was developed and implemented in conjunction with a regional alternative high school. One additional school district has formally agreed to implement the program starting in September 1997. In addition to the competency diploma, an arrangement was negotiated with North Coast High School by which adult students could complete an alternative academic curriculum and receive a high school diploma. Three adult students graduated with the North Coast class of 1997. Adult diploma programs are now available as part of a comprehensive academic program operated through a regional Pennsylvania Department of Education-approved alternative high school. Twelve appendixes to the report, which make up the major part of the document, include the following: a letter from Cumberland Valley Superintendent endorsing alternative diploma program; a list of companies who reviewed draft competencies; a list of school districts indicating interest in alternative diploma project; a description of North Coast School; flyers and memos describing graduation options; North Coast High School handbook; a press release; and a competency list. (KC)