The low-molecular-weight imidazoquinolineamine derivative 1-(2-methyl propyl)-1H-imidazole [4,5-c]quinoline-4-amine (imiquimod) inhibits replication of herpes simplex virus type 2 and cytomegalovirus in infected guinea pigs (6, 24). Imiquimodmediated inhibition of virus replication is related to its ability to induce interferon (IFN). Oral administration of imiquimod induces IFN-␣ in mice, rats, guinea pigs, monkeys, and humans. (New approved nomenclature for IFN genes [9a] is used throughout this paper.) In addition to having antiviral activity, imiquimod was shown to inhibit growth of several transplantable murine tumors, including MC-26 colon carcinoma and Lewis lung carcinoma (71). The induction of IFN-␣ plays a major, but not exclusive, role in this growth inhibition, since an antiserum to mouse IFN-␣ and IFN- significantly reduced the antitumor effect of imiquimod but was not able to abolish it completely.IFN-␣ proteins are represented by a large family of structurally related genes which show about 94% homology at the nucleotide level, while IFN- is encoded by a single gene. IFNA genes are expressed preferentially in cells of lymphoid lineage, and the individual subtypes show cell-type-specific differences in expression (2, 29, 35), while IFNB is expressed in a large variety of cells. The biological significance of the large abundance of IFNA genes is not clear; all IFN-␣ and IFN- subtypes show antiviral and antitumor properties and seem to bind to a common receptor (39); however, some differences between their immunomodulatory effects have been reported (21, 56).Virus-induced expression of IFNA and IFNB genes is mediated by a virus-responsive element (VRE) present in the promoters of IFNA and IFNB genes that, by itself, functions as a virus-specific enhancer and can confer inducibility in infected cells (3,14,19,20,58,65). At least two families of transcriptional factors were shown to play a role in induction of IFN genes that have binding sites within the VRE. One family is the set of IFN-responsive factors IRF-1 and IRF-2, which function as activator and repressor, respectively (22, 23). Overexpression of these two factors can regulate activity of both IFNA and IFNB promoter regions in a transient expression assay; a single nucleotide mutation in the IRF-1 binding site of the murine IFNA4 gene promoter decreased inducibility by about 100-fold (2), and cells expressing IRF-1 antisense mRNA were unable to express IFNB genes (62). However, the role of IRF-1 in induction of the IFN gene has been questioned, since deletion of the IRF-1 gene did not affect virus-mediated inducibility of IFN genes either in mice in vivo or in cultured cells in vitro (53,64). The second family of transcriptional factors are the Bspecific binding proteins that play a role in activation of the IFNB gene (16,19,28,43,77), and recently, a direct role of IFN-induced double-stranded RNA (dsRNA)-dependent kinase in activation of NF-B has been shown (37, 49). Furthermore, it was shown that HMG I(Y) and ATF-2 can bind to the VRE (48...