During the 1987-88 school year, 12 academy programs were operating in California under state sponsorship, including the two original Peninsula Academies in operation since 1981, and 10 replications of these, called Partnership Academies. The academies are designed to reduce the number of dropouts among at-risk high school youth. They combine a modified high school curriculum and structure with exposure to local companies and jobs, with the intent of improving students' motivation to perform well in school, graduate, and make the transition from school to work. This report presents findings from the third annual evaluation of the Partnership Academy programs. The evaluation entails two broad components: process and outcomes. The process evaluation addresses the quality of program implementation and the degree to which programs follow the academy model. The outcomes evaluation addresses the degree to which student performance changes as a result of the academies' programs. Findings indicate the following: (1) the academy program model is capable of producing substantial positive effects for students who participate in it; and (2) the model is complex to implement, and the level of success that students achieve appears to be closely related to the quality of implementation. The report includes statistical data in 44 tables and two appendixes. (AF)