Mutations in the transforming growth factor b type II receptor (TGFbRII) have been found in various malignant tumors, suggesting that loss of TGFb signaling plays a causal role in late-stage cancer development. To test whether loss of TGFbRII is involved in early-stage carcinogenesis, we have generated transgenic mice expressing a dominant negative TGFbRII (DbRII) in the epidermis. These mice exhibited an increased susceptibility to chemical carcinogenesis protocols at both early and late stages. In the current study, parameters for cell cycle progression and chromosome instability were analysed in DbRII tumors. DbRII papillomas showed an increased S phase in¯ow cytometry. Bromodeoxyuridine (BrdU) labeling and mitotic indices in DbRII papillomas also showed a threefold increase compared to papillomas developing in non-transgenic mice. When papillomas further progressed to squamous cell carcinomas (SCC), both control and DbRII SCC showed similar BrdU labeling indices and percentages of S phase cells. However, DbRII SCC cells showed a sixfold increase in the G2/M population. Mitotic indices in DbRII SCC also showed a threefold increase compared to non-transgenic SCC. Consistent with a perturbed cell cycle, DbRII papillomas and SCC showed reduced expression of the TGFb target genes p15 (INK4b), p21 (WAF-1) and p27 (Kip1), inhibitors of cyclin-dependent kinases (cdks). However, most DbRII papilloma cells exhibited normal centrosome numbers, and DbRII SCC exhibited a similar extent of centrosome abnormalities compared to control SCC (35 ± 40% cells). Most of DbRII SCC exhibited diploid chromosome proŸles. These data indicate that inactivation of TGFbRII accelerates skin tumorigenesis at early stages by the acceleration of loss of cell cycle control, but not by increased chromosome instability. Oncogene (2000) 19, 3623 ± 3631.