The British experiment with the Initial Teaching Alphabet was in its third year at the time of this report on the effectiveness of i.t.a. as a beginning reading program. Two groups of students were compared; one that started learning to read with i.t.a. and one that started with t.o. (traditional orthography). Reading and spelling tests were administered to the groups several times during the 3-year period. The results showed that the beginner's rate of progress was more rapid with i.t.a. due to the reduced volume of learning required. Children in this group, provided with a less complex alphabetic code, showed superior ability in word-building. Pupils who began with i.t.a. achieved superior scores on t.o. tests 18 months later, and when transferred to t.o. read with greater accuracy and comprehension than children who began with t.o. By the middle of the third year i.t.a. pupils could spell as well in t.o. as students who began with this system. Therefore, the acquisition of basic reading skills appears to be accelerated with i.t.a., and transfer of training from i.t.a. to t.o. results in a substantial gain in learning to read traditional orthography. (DR)