The CEO Forum on Education and Technology is an alliance of CEOs of leading United States corporations and educational organizations, all committed to a four-year project to annually assess and help improve America's program on integrating technology into its classrooms. Since the Year 1 report (1997) was issued, there has been solid progress integrating technology into public K-12 schools--the number of schools effectively using technology has risen from 15 to 24 percent, and almost 80% of schools have connections to the Internet. Focusing on professional development, this report provides: an overview of efforts to prepare teachers to use technology to improve education; a description of the progressive stages educators pass through as they integrate technology into teaching and learning; a list of essential principles for developing successful plans for professional development with technology; information and practical advice about how to make the most of technology in schools and classrooms; and a summary of the Year 2 STaR (School Technology and Readiness) assessment of current statistics in these four "pillars" of educational technology: hardware, connectivity, digital content, and professional development. The Year 2 methodology and the CEO Forum four year agenda are also provided. (AEF)