The delivery model of the Birth-through-Three program incorporates interlocking community-based centers with a regional agency (Little Tennessee Valley Educational Cooperative) under the administrative guidance of an advisory council. The program goal is to provide highly qualified professional services to the targeted children/families within their home communities in a cost-effective manner. A community-based center in Blount County, Tennessee, serves 15 children and one in Loudon County serves 7 children. The centers provide direct professional services and a Parent Information Center that informs, trains, and uses the skills of parents. Children eligible for the program meet at least one of the following criteria: (1) medical diagnosis associated with mental retardation; (2) diagnosis of moderate or greater mental retardation as determined by psychological assessment; and (3) significant delays in at least two of the five targeted developmental areas. Data on the progress of each child enrolled is maintained through a pretest/posttest procedure. Data analysis shows consistently significant gains in perceptuo-cognitive, language, and gross motor skills. The program's regional cooperative administrative structure, coupled with the employment of highly qualified professional staff, appears to be a productive, cost-effective model for providing educational services to young handicapped children in rural areas. (JHZ)