INMATES AT ROBERT F. KENNEDY CENTER IN MORGANTOWN, W. VA., ARE CLASSIFIED BY BEHAVIOR CATEGORY (INADEQUATE-IMMATURE, NEUROTIC-DISTURBED, UNSOCIALIZED PSYCHOPATHIC, OR SOCIALIZED SUBCULTURAL) AND ASSIGNED TO A COTTAGE OFFERING THE APPROPRIATE TREATMENT (TRANSACTIONAL ANALYSIS, INDIVIDUAL COUNSELING, BEHAVIOR MODIFICATION, OR REALITY THERAPY). THE EFFECTS OF THIS STRATEGY WERE ASSESSED BY COMPARING IN-PROGRAM AND POST-RELEASE OUTCOMES FOR RELEASEES FROM THE KENNEDY FACILITY WITH THOSE FOR RELEASEES FROM A COMPARABLE FACILITY AT ASHLAND, KY. THE ASHLAND FACILITY, WHICH TENDS TO EMPHASIZE SECURITY AND CONTROL OVER REHABILITATION, CATEGORIZES INMATES BY BEHAVIOR TYPE BUT DOES NOT OFFER DIFFERENTIAL TREATMENT. RELEASEES FROM KENNEDY HAD MORE PAROLES, FEWER MANDATORY RELEASES OR EXPIRATIONS OF SENTENCES, AND MORE ESCAPES OR TRANSFERS THAN DID THE COMPARISON INSTITUTION. POST-RELEASE COMPARISONS AT 6-MONTH INTERVALS UP TO 36 MONTHS REVEALED NO SIGNIFICANT DIFFERENCES BETWEEN THE INSTITUTIONS. POSSIBLE WEAKNESSES IN THE RESEARCH DESIGN ARE DISCUSSED. SUPPORTING DATA AND A LIST OF REFERENCES ARE INCLUDED. (LKM)