The Los Nietos Basic Skills Program was the first program of computer assisted instruction funded by the Emergency School Aid Act (ESAA). The system initially supported 17 typewriter-style terminals, but the number was later increased to 24. Because of software problems, the system changed companies and the courses changed to the following: Elementary Reading Skills (Grades 3-6), Elementary Arithmetic (Grades 1-6), and Elementary Language Arts (Grades 3-6). In the evening hours, the system was used with adult reading, math, and language skills. Computer Assisted Instruction (CAI) takes over the drill and practice function of teaching. In the Los Nietos School District in Los Angeles, CAI is being implemented in 5 schools. Teachers have remarked on the enthusiasm of the children toward the terminals. It seems that pupils who have been the most difficult to handle are particularly attracted to this medium. It also appears that CAI is a valuable medium of instruction in school districts that are in the process of desegregation. (Author/AM)