The outer envelope of the 42-nm virion of the human hepatitis B virus (HBV) is composed of the large, the middle, and the major surface proteins. Whereas the middle and the major surface proteins are transcribed from the SPIH promoter of the pre-S/S gene, the large surface protein is transcribed from the SPI promoter located upstream of SPIl. We liver-specific genes from human, mouse, and rat, with a consensus sequence (G/A)GTTA(A/C)TNNT(C/T) NNC(A/C). We further identified a nuclear factor present in the nuclear extracts of differentiated human hepatoma cell lines which interacted specifically with this element of the SPI promoter. This nuclear factor was similar to the rat liver-specific factor HNF-1, since an oligonucleotide containing the recognition sequence of HNF-1 could efficiently compete for the human factor in a footprinting assay. The sequence at nt -93 to -68 which was bound by this factor in SPI was termed the EINF-1-binding element. Activation of the SPI promoter by human differentiated hepatocyte nuclear factor 1, described in this report, probably explains, first, the formation of the 42-nm virion specifically in liver but not in several other tissues despite the synthesis of the middle and the major surface proteins in those tissues, and second, why only differentiated hepatoma cell lines are able to produce 42-nm-like virion particles on transfection by HBV DNA.Hepatitis B virus (HBV) causes acute and chronic hepatitis and is closely associated with the development of hepatocellular carcinoma (4, 48). The virion has a diameter of approximately 42 nm with a 27-nm core enclosing a 3.2-kilobase (kb) partially single-stranded DNA genome (5, 49). The outer envelope of the virion is arrayed by three surface (S) proteins. The major S protein, 226 amino acids long, is encoded by the S region of the HBV genome; the middle S protein is encoded by the pre-S2 and S regions, with an additional 55 amino acids at the amino terminus of the major S protein; and the large S protein is encoded by the pre-Sl, pre-S2, and the S regions, with an additional 117 amino acids at the amino terminus of the middle S protein (25,38,47). These three proteins are encoded by the pre-S/S gene, which contains two promoters. The distal TATA-like promoter (SPI) transcribes a 2.4-kb mRNA for the synthesis of the large S protein, whereas the proximal simian virus 40-like promoter (SPII) transcribes a 2.1-kb mRNA for the synthesis of both the middle and the major S proteins (7, 32, 39).The major S protein can be produced from many different tissues in HBV-infected chimpanzees and in transgenic mice carrying HBV DNA (2,7,8,20). However, the large S protein is detected more specifically in liver and, in only a few cases in transgenic mice, in the kidney and heart. Furthermore, the time of appearance of the large S protein is coincident with the appearance of replicative intermediates of the viral genome (2,20). Together, these observations * Corresponding author. strongly indicate that expression of the large S protein gene is hepat...