The Southern Regional Education Board (SREB) is the first interstate compact for education in the United States. This annual report describes the foundation and activities of the SREB, which deals with education at all levels, from prekindergarten through college. SREB maintains an extensive database about education in all 16 member states. Staff members respond to requests for information, and SREB produces a range of publications, including its annual "SREB Fact Book on Higher Education." The report contains information on: (1) SREB education goals; (2) policies; (3) state services; (4) the High Schools That Work program; (5) two technology initiatives; (6) the SREB Doctoral Scholars Program; (8) leadership initiatives; (9) the Regional Contract Program and the Academic Common Market; and (10) the Council on Collegiate Education for Nursing. Members of the SREB Board and staff members are listed. (SLD)