This report examines the first 2 years of the Alabama Reading Initiative (ARI), whose goal is 100% literacy for all Alabama's public school children using a balanced approach to reading instruction. It includes results from the external evaluation team, examples of changes in teaching practices and student behaviors, as well as the voices of participating teachers and school administrators. The report discusses what the ARI is, the key players (the principal, classroom teacher, higher education partner, reading specialist, and inservice center reading specialist), early results (reading scores are up, students are reading more, discipline problems are down, and special education referrals are down), stories of transformation from classrooms across the state, and challenges for the ARI. (RS)