The 1998 NAEP (National Assessment of Educational Progress) state level reading assessment measured fourth- and eighth-grade students' reading proficiency in situations that involved reading for three purposes: reading for literary experience, reading to gain information, and reading to perform a task (grade 8 only). This report describes the reading proficiency of Arkansas fourth-grade public school students, as well as the proficiency of eighth-grade public and nonpublic students, and compares their overall performance to students in the Southeast region of the United States and the nation (using data from the NAEP national assessments). The distribution of reading results and reading achievement level results are provided for subpopulations of students (gender, race/ethnicity, students' reports of parents' highest educational level, free/reduced-price lunch program eligibility, and type of location). The average reading proficiency of fourth-grade public school students in Arkansas on the NAEP reading scale was 209 compared to 215 nationwide; 256 compared to 261 nationwide for eighth-grade public school students; and 279 compared to 281 nationwide for eighth-grade nonpublic school students. (RS)