The Office of Technology Assessment reviewed the nation's literacy problem and the current and potential impact of using technologies in adult literacy programs. Data were collected from 2 workshops, 155 contributors and reviewers, 60 existing literacy programs, and 6 contractor reports. The information is summarized in this eight-chapter report. Chapter 1 is a summary and outline of policy issues and options. Chapter 2 examines the changing nature of literacy, the demographics of adult literacy, and the need for literacy education. The special needs of adult learners and the role of technology in meeting them is discussed in Chapter 3. Chapters 4 and 5 describe the existing system of literacy education and the federal role in it. Promising roles for technology in improving literacy education are outlined in Chapter 6. Chapter 7 deals with access/barriers to technology use in existing literacy programs, and Chapter 8 assesses the future role of technology in literacy education. Appendixes include the following: a list of the report's boxes, figures, and tables; information on major federal adult literacy/basic skills programs and key coordination provisions in literacy legislation; a glossary and list of acronyms; and lists of the study's reviewers and contributors. (MN)