This bulletin highlights topics addressed at a National Association of State Directors of Special Education (NASDSE) Action Seminar on Infants Exposed to Illicit Drugs and Alcohol in Utero. The incidence of babies being born exposed to cocaine and other illicit drugs is outlined, and it is concluded that numbers appear to be on the rise. The effects of illegal drugs on newborns are spelled out, and physiological causes of these effects are noted. Myths and realities in the effects of illicit drug use are identified. The need for joint coordinated efforts by several service agencies is discussed. Behavioral and academic strengths and limitations of these children, as determined from several research projects, are described. A list of recommendations pertaining to infants and children exposed to illicit drugs is presented. The bulletin concludes with NASDSE's statement to the House Select Committee on Narcotics Abuse and Control at a July 1991 hearing, and an excerpt from an amendment to the Higher Education Act Reauthorization related to training for teachers of drug-exposed children. (JDD)