The National Literacy Project was implemented in its first cohort of schools from autumn 1996 to summer 1998. Participating schools introduced a Literacy Hour, based on specific learning objectives, as the main means of literacy teaching. The project was evaluated by the National Foundation for Educational Research, by means of: tests of reading; a survey of children's attitudes to reading; and questionnaires completed by participating headteachers. Project consultants supplied additional information on the characteristics of teaching, learning, and management within project schools. The test results revealed a significant and substantial improvement in children's scores in the course of the project. Girls had higher average scores than boys and made more progress in the course of the project. Children eligible for free school meals, those with special educational needs, and those leaning English as an additional language had lower average scores, although all these groups nonetheless made significant progress. The role of the headteacher in successful project schools was crucial, in providing committed, engaged, and informed leadership. Effective teaching within the literacy hour was characterized by consistency, clear structure, high quality interaction, good pace, and thorough planning. Includes 4 references and an appendix which details data sources. (PM)