THE RESULTS OF THE CONTINUATION OF USOE PROJECT 2745 WHICH EVALUATED THE READING ACHIEVEMENT OF STUDENTS TAUGHT BY THE INITIAL TEACHING ALPHABET (ITA), THE DIACRITICAL MARKING SYSTEM (DMS), AND A TYPICAL BASAL READING SERIES (TO) ARE REPORTED. A NEW SET OF DMS MATERIALS WAS DEVELOPED AND USED IN SEVEN FIRST GRADES. THE READING ACHIEVEMENT OF THESE PUPILS WAS COMPARED WITH THAT OF PUPILS DURING THE PREVIOUS YEAR. TWENTY-ONE CLASSES OF SECOND GRADERS PARTICIPATED IN THE 140-DAY EXPERIMENT. READINESS TESTS, INTELLIGENCE TESTS, AND ORAL AND SILENT READING ACHIEVEMENT TESTS WERE ADMINISTERED. ANALYSIS OF COVARIANCE, ANALYSIS OF VARIANCE, CORRELATION, AND CHI SQUARE WERE USED TO ANALYZE THE DATA. NO METHOD WAS SUPERIOR FOR BRIGHT OR DULL STUDENTS OR FOR BOYS OR GIRLS. THE COMPETENCE OF THE TEACHER WAS IMPORTANT, ESPECIALLY IN THE FIRST GRADE. INTELLIGENCE TEST SCORES WERE BETTER PREDICTORS OF READING SUCCESS THAN WERE READINESS TEST SCORES. THERE WAS NO CORRELATION BETWEEN READING ACHIEVEMENT AND CLASS SIZE. ADDITIONAL RESULTS, CONCLUSIONS, TABLES, AN APPENDIX, AND REFERENCES ARE INCLUDED. (BK)