The Indiana Department of Education (IDOE) has administered the Early Literacy Intervention Grant Program (ELIGP) since 1997. During the first 3 years of the program, about half of the state's elementary schools received funding through ELIGP, either through Reading Recovery or Other Early Literacy Interventions (OELI). This report summarizes the evaluation study of the impact of the ELIGP during those 3 years. The study reveals that Indiana's elementary schools have a balanced approach to early reading. The report cites specific findings and states that early literacy programs that are appropriately selected to serve student needs appear to improve student outcomes regardless of poverty levels. It finds that several types of funded programs (e.g., Success for All, Literacy Collaborative, First Steps, Reading Recovery, Even Start) and program features influenced literacy outcomes when the effects of other school characteristics that influence early reading were taken into account. The study identified common patterns of practice among the instructional and organizational features of early reading programs in Indiana's elementary schools, and the effect of these patterns of practice on early literacy outcomes was also examined. On the basis of findings, the report recommends that: the ELIGP should be continued with an emphasis on Reading Recovery and on comprehensive restructuring methods; continuing evaluation research on early literacy interventions can help improve efforts by the IDOE, school corporations, and schools to design better approaches to literacy improvement; and the IDOE should facilitate collaboration between schools and universities on teacher preparation and professional development. (NKA)