THIS REPORT DESCRIBES THE 1966-67 ACTIVITIES OF AN ELEMENTARY AND SECONDARY EDUCATION ACT, TITLE I PROGRAM WHICH PROVIDES INTENSIVE THERAPY FOR PRESCHOOL CHILDREN WITH SEVERE LANGUAGE HANDICAPS. THE PROGRAM ALSO OFFERS EDUCATORS FRESH INSIGHT INTO THE NATURE AND TREATMENT OF SPEECH DISORDERS. INCLUDED IN THE REPORT ARE BRIEF CASE STUDIES OF THE TEN ENROLLEES AND TABLES WHICH GIVE THEIR PERFORMANCE RATINGS. THE RATINGS COVER THE AREAS OF COORDINATION, PERCEPTION, SENSORY DISCRIMINATION, MEMORY, LANGUAGE, SOCIALIZATION, AND BEHAVIOR CHARACTERISTICS. ACCORDING TO THE RATINGS, NINE OF THE 10 CHILDREN HAVE IMPROVED IN FROM FIVE TO 14 OF THE PERFORMANCE AREAS. THE COST PER CHILD FOR A 2-YEAR PERIOD OF THIS SPECIAL TREATMENT IS ESTIMATED TO BE ABOUT $4,000. AMONG THE RECOMMENDATIONS OF THE REPORT IS THE SUGGESTION THAT PROVISION BE MADE FOR RESEARCH TO MEASURE THE KINDS OF BEHAVIORAL CHANGES WHICH RESULT FROM SPECIFIC TYPES OF THERAPY. THE APPENDIXES TO THE REPORT CONTAIN EXTENSIVE CASE HISTORIES OF TWO OF THE 1966-67 ENROLLEES AND A DESCRIPTION OF THE MATERIALS USED IN LANGUAGE THERAPY. (LB)