The North Carolina Open-Ended Assessment for grades 5 and 8 emphasizes higher-level thinking skills. Test items commonly require the integration of knowledge and skills from more than one curricular area. Beginning in 1996-97, the North Carolina Open-Ended Assessment was administered to students in grades 5 and 8 for the second time. Because it is administered in the fall, the assessment measures skills and knowledge for grades 4 and 7. Each open-ended test is built around a reading passage or passages with test items that are loosely linked to the content of the passage. Each test contains six mathematics and six reading items. For scoring purposes, there is a general rubric for reading and another for mathematics. In November 1997, an equating study was conducted to ensure that test forms are comparable from year to year. Fifth graders in 1997-98 scored slightly higher than grade-5 students from the previous year on the total scale score, with most of the increase occurring in mathematics. The mean total scale score for all ethnic groups improved, although White students outperformed Blacks, and Asian American students outperformed Whites. In grade 8, students slightly outperformed those of the previous year, with the gain in reading a little higher than the gain in mathematics. White and Asian American students were more likely to score in the higher achievement levels. Tables present mean scale scores for both grades in both subjects, data on average performances of students by ethnicity, disability, Title I participation, and local education agency. Frequency distributions and percentiles are presented for both grades and both subjects. Appendixes contain sample student reports and a list of the state's charter schools. (Contains 20 tables and 7 figures.) (SLD)