This 2004 Annual Report to Congress has two volumes. Volume 1 focuses on the children and students being served under IDEA and provides profiles of individual states' special education environment. It contains three sections. Section I contains the child/student-focused material, presented in a question-and-answer format. It contains three subsections: infants and toddlers served under IDEA, Part C; children ages 3 through 5 served under IDEA, Part B; and students ages 6 through 21 served under IDEA, Part B. All information available about each group of children/students is presented in one section. Each subsection focuses on available results. To the extent possible, the data are presented through graphics, short tables and bulleted text. Please note that throughout this report the terms "infants and toddlers with disabilities," children with disabilities," and "students with disabilities" refer to recipients of services under IDEA, Parts C or B. Section II of the report contains state-level performance data. These state profiles, which provide key information about a state on one or two pages, will be valuable to Congress and other stakeholders who are interested in individual state performance. The state profiles were a new feature of the 2003 annual report. Section III presents tables of states rank-ordered by their reported data for exiting, dropout, educational environments, early intervention services and early intervention settings. OSEP (Office of Special Education Programs) uses these tables as part of its Continuous Improvement and Focused Monitoring System. Appended are: (1) Data Notes for IDEA, Part C; and (2) Data Notes for IDEA, Part B. (Contains 112 tables and 52 figures.) [This report was produced by the U.S. Department of Education's Office of Special Education Programs.]