In 1989, Cochise College (CC) conducted a study to determine if a positive relationship existed between grade placement scores on the Nelson-Denny or Nelson reading comprehension examination and academic performance. The study population consisted of new or first-time CC students who were tested after May 1989. Placement scores for students who were tested in 1989 were joined with class grades for the fall 1989 term to create a data base of grades and reading placement scores. Major findings of the study were as follows: (1) a positive relationship did exist overall between placement scores on the Nelson-Denny exam and academic success, although a negative relationship existed in developmental classes; (2) students in the highest category of test scores (13+) had higher success rates in non-vocational courses than they did in vocational courses, while the opposite was true for students in the other categories; (3) students whose placement scores were grade 10 or above enrolled mainly in upper division classes, and students whose placement scores were below grade nine enrolled primarily in developmental classes; (4) the Nelson-Denny was a better predictor of success for traditional arts and sciences courses than for vocational courses; (5) most of the students who were tested in 1989 placed at grade 11 or better; and (6) the Nelson-Denny examination was not a good predictor of academic success at lower grade levels. Appendixes providing grades by placement scores and other student data are attached. (JMC)