One hallmark of Alzheimer disease is the formation in the brain of amyloid plaques containing a small peptide derived from the fi-amyloid precursor protein (APP).The APP gene exhibits a complex pattern of expression in peripheral tissues and in the brain. The entire human APP gene was introduced into embryonic stem (ES) cells by co-lipofection of a 650-kb yeast artificial chromosome (YAC). Three ES lines containing an essentiafly intact YAC were isolated, and expression of human APP mRNAs at levels comparable to those of endogenous mouse APP transcripts was obtained. A transgenic mouse line was established by germ-line transmission of the APP YAC. RNase protection analysis of human APP mRNAs demonstrated appropriate splicing of the primary APP transcript in ES cells and in the brain of a transgenic animal. These mice may be useful for elucidating the function of the various APP isoforms in vivo.The senile plaques characteristic of Alzheimer disease (AD) consist of abnormal neurites around an amyloid core primarily composed of a 4-kDa polypeptide, /3-amyloid. The 3-amyloid peptide is derived from the cellular processing of ,B-amyloid precursor protein (APP). Mutations in the APP gene have been identified in certain cases of familial AD, suggesting a causal role for ,B-amyloid deposition in at least some forms of AD (1, 2). The human APP gene is located on chromosome 21, and Down syndrome (DS) individuals overexpress the wild-type APP protein (3). Those who survive past their thirties invariably develop an AD neuropathology (4), and immunoreactive f-amyloid depositions can be found prior to any detectable neuronal degeneration in the DS brain (5). Although APP is expressed at normal levels in non-DS cases of AD, the phenotype seen in DS individuals suggests that AD may be initiated or accelerated by overexpression of APP.The APP gene is composed of 18 exons distributed over several hundred kilobases (6). Alternative splicing of the primary transcript results in the production of at least five distinct transcripts. Of the three predominant APP isoforms, APP770 and APP751 contain a Kunitz-type protease inhibitor (KPI) domain, and are found at varying levels in many tissues (7,8). APP695, lacking the KPI domain, is the predominant splice form in the brain and is less abundant in the periphery (7). Other APP variants have been detected at lower levels (9-11). A possible role for the various isoforms in the progression of AD is suggested by changes in AD brains of the ratio of the KPI-containing APP variants to . However, it is clear that the APP gene exhibits complex tissue-and cell type-specific expression in human (10) and mouse (16) brain.The lack of a small-animal model for AD has hampered investigation of the early events in the progression of AD.