The goal of the Agam Program is to teach visual literacy to preschoolers. The Agam Project implemented the program in Israel in 1983. This report summarizes the second cycle of research on the program, which was conducted in 1985-87. The Agam Program integrates visual concepts with specific skills and develops specific cognitive processes. The program is for children aged 3-6 years and for various types of preschool classrooms. To evaluate the program, project staff adopted a research design which integrated quantitative and qualitative methodologies. The sample was made up of 25 matched pairs of preschool classes. Children in the Agam Program were better able to identify and apply visual concepts than other preschool children. Effects of the program generalized beyond the program's specific tasks. Children in the program scored higher in fine motor tasks and mathematics readiness. Naturalistic observations provided evidence that children received the Agam Program with enthusiasm. Non-social and non-verbal children were dramatically helped by the program. Recommendations for wider implementation and continued development of the program are offered. An extensive reference list is provided. Appendixes include a description of theories of visual congnition and a collection of program materials. (BC)