The National Adult Literacy Survey profiled the literacy of U.S. adults based on their performance on tasks reflecting materials and demands of daily life. Data were gathered through interviews with a random sample of 13,600 people over 16, a survey of 1,000 adults in each of 12 states, and interviews with 1,100 prison inmates, making a total of 26,000 adults surveyed. Participants completed a series of literacy tasks and received proficiency scores on three scales measuring prose, document, and quantitative literacy. They were categorized in five levels. Major findings were as follows: (1) 40-44 million adults were at the lowest level, of whom 25% were immigrants, 62% did not complete high school, and 19% had visual difficulties; (2) 50 million at level 2 had difficulty with higher reading and problem-solving skills; (3) most at levels 1-2 rated their reading/writing as well or very well--they could meet most needs with limited skills; (4) 61 million were at level 3, 34-40 million at levels 4-5; (5) young adults were less proficient than those surveyed in 1985; (6) older adults were more likely to have limited skills; (7) many minorities and prison inmates were more likely to be at levels 1-2, due to fewer years of schooling or limited English proficiency; (8) higher levels correlated with being employed, working more weeks, and having higher wages; and (9) 41-44% of level 1 and 4-8% of levels 4-5 were in poverty. (Appendices include definitions and 31 data tables. Document includes 13 other tables and 26 figures.) (SK)