Objective. We recently developed an ex vivo cellular model of pannus, the aberrant overgrowth of human synovial tissue. This study was undertaken to use that model to investigate the role of prostaglandin E 2 (PGE 2 ) and its receptor subtypes in the development of pannus growth and osteoclast activity in rheumatoid arthritis (RA).Methods. Inflammatory cells that infiltrated pannus from patients with RA were collected without enzyme digestion and designated synovial tissue-derived inflammatory cells. Their single-cell suspensions were cultured in medium alone to observe an aberrant overgrowth of inflammatory tissue in vitro. Levels of cytokines produced in culture supernatants were measured using enzyme-linked immunosorbent assay kits. Osteoclast activity was assessed by the development of resorption pits in calcium phosphate-coated slides.Results. Primary culture of the synovial tissuederived inflammatory cells resulted in spontaneous reconstruction of inflammatory tissue in vitro within 4 weeks, during which tumor necrosis factor ␣, PGE 2 , macrophage colony-stimulating factor, and matrix metalloproteinase 9 were produced in the supernatant. This aberrant overgrowth was inhibited by antirheumatic drugs including methotrexate and infliximab. On calcium phosphate-coated slides, synovial tissue-derived inflammatory cells showed numerous resorption pits. In the presence of inhibitors of endogenous prostanoid production such as indomethacin and NS398, exogenous PGE 1 and EP4-specific agonists significantly inhibited all these activities of synovial tissue-derived inflammatory cells in a dose-dependent manner. Addition of indomethacin, NS398, or EP4-specific antagonist resulted in the enhancement of these cells' activities. EP2-specific agonist had a partial effect, while EP1-and EP3-specific agonists had no significant effects.Conclusion. These results suggest that endogenous PGE 2 produced in rheumatoid synovium negatively regulates aberrant synovial overgrowth and the development of osteoclast activity via EP4.Rheumatoid arthritis (RA) is a progressive, systemic inflammatory disorder that is characterized by a chronic synovitis which leads to pannus formation and joint destruction. Pannus tissue is composed mainly of activated macrophages, T cells, and proliferating fibroblast-like synoviocytes (FLS) (1-3). Both cytokine networks and cell-cell interaction contribute to the development of pannus tissue. Previous studies indicated that both peripheral blood and synovial monocyte/ macrophages had the ability to serve as osteoclast precursors and developed osteoclastic activity when cocultured with either CD14Ϫ synovial cells or FLS in the presence of macrophage colony-stimulating factor (M-CSF) (4). Cultured synovial fibroblasts and mesen-