This paper examines the first educational placement and current placement for 1068 New Mexico students who graduated from special education preschool programs, 1987-1989. All subjects met eligibility criteria for the developmentally disabled and were divided evenly between rural and urban districts. With regard to initial placements, 9% of subjects graduated to regular classroom settings, 40% graduated to regular education with some support, and 51% graduated to self-contained special education classrooms. For current placements, 11% were in regular classrooms with no support, 35% were in regular classrooms with some support, and 54% were in self-contained special education classrooms. Stability of initial placement was 84%. These results are similar to those of a 1988 Washington study. Comparison of initial placements in rural and urban districts found that 43% of rural students graduated to regular classrooms with some support, compared to 32% of urban students, while 36% of rural students graduated to self-contained special education classrooms, compared to 59% of urban students. One percent of urban students and 11% of rural students graduated to unspecified ("other") placements. This paper contains seven data tables and three figures. (SV)