The Los Nietos School District in Los Angeles was the first school in the United States that had its basic skills program supported through intensive use of computers. Through fundings under the Emergency School Aid Act (ESAA), the program is embarking on its third year. The system initially supported 17 typewriter-style terminals, but before the end of the year the number was increased to 24. The system supported the following courses: Arithmetic Proficiency Training Program, Elementary Reading Skills, and WRITE. The system was affected by slow response time and software problems and the courses shifted to Elementary Reading Skills (grades 3-6), Elementary Arithmetic (Grades 1-7), 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), it has been shown, is an effective medium for building internal control in the child who believes that his life is controlled by external forces. It also appears that CAI is a valuable medium of instruction in school districts that are in the process of desegregation. Teachers have reported that pupils who have been the most difficult to handle appear to be particularly attracted to the medium of CAI. (Author/AM)