This is the first annual report of a 3-year exemplary project, financed by the U.S. Office of Education to prove that vocational cooperative education--a community college plan for career preparation through classroom study and off-campus, paid work experience--is an effective solution to the problems of student motivation, educational relevance, and bridging the gap between school and employment. The major objectives specified for the first year of the program were to establish a national demonstration model and to demonstrate the effectiveness of (1) alternate semester, parallel and extended-day plans, (2) recruitment, development and coordination procedures, (3) disadvantaged student recruitment and maintenance, (4) technical, business and paraprofessional manpower recruitment and training, and (5) "outreach" instruction and counseling. Within this framework, 24 lesser goals and objectives were specified for the exemplary program. In all cases the primary governing philosophy was not to prove the concept of cooperative education, but rather to determine the most effective vocational curriculum patterns and procedures. Efforts expended in these directions are reviewed in a discussion of program procedures, first year progress, budget arrangements and program evaluation. (AL)