This report addresses three major issues concerning the Army's program for developing extension training materials: (1) indications of low usage of Army Training Extension Course lessons by soldiers in the field; (2) improvements needed in the process for developing extension training materials; and (3) the need for further evaluation before the Army commits itself to procuring and fielding a new videodisc electronic information delivery system programmed to cost approximately $127.3 million. The document begins with a letter from Frank C. Conahan, Director of the U. S. General Accounting Office (GAO) to John O. Marsh, Jr., the Secretary of the Army, which provides a critique of the Army's Extension Training Program, recommends further evaluation before purchase is made of new videodisc equipment, and introduces the four appendices that make up the major part of the document. Appendix I provides background information on extension training materials; the objectives, scope and methodology of this study; and major findings of the study. Appendix II consists of a letter from the Senior Associate Director of the U.S. General Accounting Office expressing concern over whether the acquisition plans for videodisc equipment are justified based on the low usage of current training materials by soldiers in the field. Appendix III contains a letter from the Principal Deputy Assistant Secretary of Defense in response to the GAO report "Observations on Army's Plan to Buy an Electronic Video-Disc Delivery System," also included in Appendix III. The final appendix consists of the GAO draft report, "Improvements Needed in the Army's Program for Developing Extension Training Materials for Use by Soldiers in Field Units," which contains five findings and four recommendations and the Department of Defense's reaction to each. A letter from the Department of Defense in response to the draft GAO report is also provided. (JB)