An evaluation of the first year of operation of the elementary part of the Individualized Mathematics System (IMS) is reported in this document. The opening section describes the IMS course, where re-usable workpages guide students to work individually, often using manipulative materials, to meet carefully defined objectives at nine levels. The evaluation covered four aspects: curriculum adequacy, material effectiveness, cost effectiveness, and learning effectiveness. The means used included the following: reports by Joseph Scandura and Robert Gagne on the IMS structure and methods (reprinted in full); teacher surveys at training workshops and three times during the year; reports and meetings of evaluation coordinators (one in each of the 23 participating schools); and standardized student achievement tests. Estimates of pupil progress in IMS are extrapolated from the overall test results, and results in four selected schools are analyzed in more detail. Observations on the implementation and usage of the IMS materials are drawn from the verbal reports. The evaluation shows that IMS is meeting most of its goals, but several recommendations for specific improvements and extensions are derived. (MM)