The CREM gene encodes both activators and repressors of cAMP-induced gene expression. An isoform of CREM encodes the powerful transcriptional repressor ICER (Inducible cAMP Early Repressor), which has been shown to be inducible by virtue of an alternative, intronic promoter. The CREM gene belongs to the early response class and displays a characteristic neuroendocrine cell-and tissue-speci®c expression. To date ICER inducibility has been described in non-replicating, terminally di erentiated tissues. In this paper we document a robust induction of CREM expression in the regenerating rat liver after partial hepatectomy. This represents the ®rst link of inducible CREM expression to the phenomenon of cellular proliferation. Furthermore, it represents the ®rst example of transcriptional activation of a cAMP-responsive factor in the regenerating liver. This has signi®cant physiological relevance since the adenylate cyclase signalling pathway is strongly implicated in liver regeneration. Finally, we show that the repressor ICER is inducible in the hepatoma cell line H35 upon activation of the adenylate cyclase and phosphorylation of the activator CREB.