THIS ANNUAL REPORT IS AN INTERIM REVIEW FOR THE SCHOOL YEAR 1964-65 OF A 5-YEAR PROJECT WITH THE 1965 GRADUATING CLASSES OF THREE NEW YORK CITY HIGH SCHOOLS. THE PROJECT WAS CONCERNED WITH (1) IDENTIFYING THE POTENTIAL ABILITIES OF THE CULTURALLY DISADVANTAGED STUDENTS, (2) STUDYING THE EFFECTIVENESS OF INCREASED GUIDANCE TIME WITH SUCH STUDENTS, AND (3) ASSESSING THE USE OF FULL-TIME COUNSELORS AND SPECIALIZED PERSONNEL SUCH AS A PSYCHOLOGIST AND A SOCIAL WORKER IN THE HIGH SCHOOLS. ONE HIGH SCHOOL WAS THE CONTROL WITH A GRADE ADVISER SYSTEM OF COUNSELING AND NO INCREASED SERVICES. ONE OF THE EXPERIMENTAL SCHOOLS HAD A FULL-TIME COORDINATOR AND PART-TIME COUNSELORS. THE OTHER EXPERIMENTAL SCHOOL HAD FULL-TIME COUNSELORS AND SPECIALIZED PERSONNEL ON A PART-TIME BASIS. BOTH EXPERIMENTAL SCHOOLS HAD AN EQUAL AMOUNT OF INCREASED GUIDANCE TIME. A RANDOM SAMPLE OF 570 AND MATCHED SAMPLES (SEX, AGE, AND MENTAL ABILITY) OF 192 WERE SELECTED. THE PROJECT HYPOTHESIS WAS THAT INCREASED MOTIVATION, IMPROVED SCHOLASTIC ACHIEVEMENT AND LOWER ATTRITION WOULD RESULT IN THE EXPERIMENTAL SCHOOLS WITH INCREASED GUIDANCE TIME. IN THIS 4TH YEAR OF STUDY, THE CRITERIA OF COURSE SELECTION, COURSE LOAD, TERM AVERAGES, ATTENDANCE RECORDS, AND DROPOUT RATE SHOWED NO SIGNIFICANT EFFECT OF PROJECT ABLE. (NS)