The Wake County (North Carolina) Public School System first implemented Reading Recovery in 1990-91 and expanded the program in 1991-92. The goal of Reading Recovery is to provide intensive help to first graders having difficulty before their problems become too severe. Reading Recovery staff collected data, and the Chapter 1 evaluation specialist collected follow-up data for students after they left the program. Annual site reports by the Reading Recovery staff found positive short-term results for students who had received help both years. Seventy-seven percent of the 1990-91 and 73 percent of the 1991-92 students who completed the program were able to be discontinued successfully from the program. Students with a complete program showed greater gains in reading skills than did a comparison group. Results of the evaluation of long-term impact were somewhat more mixed, but generally positive. Students from the first cohort had lower special education placement rates and lower Chapter 1 placement rates in the second grade. Overall, the program seems quite promising, although teachers may need more information to recognize and capitalize fully on the skills Reading Recovery provides to students. Ways to increase the percentage of students who complete the Reading Recovery program are discussed. Fifteen figures present evaluation findings. The survey of student reading abilities is included. (SLD)