Latent membrane protein (LMP) is a latent EpsteinBarr virus (EBV) protein expressed in the EBV associated malignancy, nasopharyngeal carcinoma (NPC). Properties ascribed to this protein include inhibition of epithelial cell di erentiation and deregulation of epithelial cellular gene expression, and are believed to contribute to the development of NPC. Studies to evaluate the oncogenic potential of LMP in epithelial cells have not been conclusive. We carried out studies to determine the tumorigenic activity of LMP in two human epithelial cell lines, SCC12F and HaCaT; while SCC12F LMP transfectants were non-tumorigenic in severe combined immunode®cient mice, HaCaT LMP transfectants were strongly oncogenic. The tumours produced were well di erentiated, keratinising squamous cell carcinomas suggesting that LMP does not inhibit epithelial cell di erentiation which con¯icts with a previous report by Dawson et al. (1990). To resolve this discrepancy we examined the ability of HaCaT and SCC12F LMP transfectants to di erentiate in a suspension culture assay. Both lines were able to di erentiate to a similar extent as parental lines and control transfectants. Our results indicate that LMP is strongly oncogenic in human epithelial cells but that inhibition of di erentiation is not necessarily a mechanism by which LMP contributes to the pathogenesis of NPC.