This newsletter, focusing on literature and research on cognitive behavior modification (CBM), reviews articles and research on CBM with children. Works on retarded children, deaf children and children with learning disabilities are presented, with critical analyses. A parallel section on CBM with adults follows. Problem areas of phobias, anxiety, and self-control--as they appear in research and literature--are presented. Research on clinical problems and techniques regarding the aged, brain damaged, and schizophrenics is reviewed. Each section includes a bibliographic essay of the year's output. The newsletter concludes with current published references of articles in CBM that were reviewed in earlier CBM newsletters. Addresses of researchers and references to actual studies are included. (Author/BEF)