The Kosrae (Micronesia) Department of Education operated a Title VII transitional bilingual education program from 1986-89, targeting the 1986-87 cohort of seventh graders. During the first 2 years, the students attended five village elementary schools, and during the third year attended the high school. This cohort had been targeted in previous bilingual education programs. The four program components were student achievement, material development, staff development, and parent and community involvement. A formative process and product evaluation was conducted by an evaluation team. This report contains the results of the evaluation both in summary form, including findings of program effectiveness and specific recommendations for program improvement, and in full report form. A section on student achievement looks at results in English speaking, listening, and reading; Kosraean reading comprehension; and supplementary English testing. Data on classroom observation includes information gathered on each teacher's performance and in ethnographic school observations. Staff development results include data on professional experience and attitudes from a survey of teachers and descriptions of 1989 staff development events. Parent and community involvement events and advisory council activities are described, and a section on material development outlines curricular materials in progress, completed, and purchased for the program. A transcript of the ethnographic observation is appended. (MSE)