The Ounce of Prevention Fund is a public-private partnership which promotes the well-being of children and adolescents by working with families, communities, and policymakers. Following a letter from the Fund's chairman and president discussing the challenges faced in program evaluation and reiterating the Fund's commitment to public-private partnerships, this report presents highlights from the past 2 years, while profiling some of the partners with whom the Fund works. The report describes the roots of the Fund as a laboratory where theories were tested in the real world and turned into best practices. The remainder of the report is organized around the four cornerstones of the Fund: (1) program; (2) training; (3) research; and (4) advocacy. Program highlights include provision of early childhood care and education through Early Head Start and Head Start programs in Chicago, combining resources to enhance program quality, expanding services through a new educare center, and using preventive health care to help children, adolescents, and their families. Training highlights include program development training and technical assistance to the Parents Too Soon program and the Doula Project. Research highlights include research and evaluation efforts related to substance abuse prevention in the Fund's Head Start sites and developing new micro-computer based management information systems for use by program sites. Advocacy highlights include a joint effort with Family Focus, Inc., called Kids Public Education and Policy Project, to inform public officials and others about issues affecting children and family. A Partner Profile is included with each section. Also included in the report is a statement of the Fund's operating revenues and expenses, a list of sites, and a list of donors to the Fund. (KB)