Three analyses were conducted for this progress report of the Reading Excellence Act as implemented in Alabama public schools. The first analysis involved third grade reading comprehension scores over the 3-year period (1999-2001). Overall, reading comprehension scores remained stable. Based on multiple criteria, schools that either failed to meet expectations or exceeded them were identified. The second analysis examined changes from second to third grade for a matched sample of students participating REA schools. For all schools, the scores were higher in second grade. This may be, in part, due to the nature of the evaluation instrument used, the Alabama Early Learning Inventory. As in the first analysis, schools that either failed to meet expectations or exceeded them were identified. The third analysis examined relationships among the scores from the kindergarten, first, and second grade assessments with Stanford Achievement Test, Level 9 scores in third grade. Results revealed strong, positive relationships between each of the second grade strands and third grade performance. (RS)