The report focuses on the objectives of the Preschool Instruction for the Exceptional (PIE) program, an early intervention program designed to help handicapped children function more effectively and help parents understand their child's special needs. It is explained that the primary goal of PIE is to have each child enter the mainstream of education with increased competency in educational skills and coping behavior. The following five objectives are described and evaluated: (1) identification and diagnosis of preschool handicapped children (ages 3-5 years), (2) continuation of the development of a transdisciplinary team and learning environment that is responsive to each child's needs, (3) development and implementation of personalized programs for prescriptive teaching, (4) involvement of parents of handicapped children in their child's personalized program, and (5) implementation of community outreach to facilitate mainstreaming of the children. Over half of the document consists of appendixes such as the PIE brochure, the PIE Parent Questionnaire, the Coping Questionnaire, and PIE year-end evaluation report. (Author/PHR)