Permanent Schwann cells lines have been established in culture after stable transfection of newborn rat Schwann cells with the pJC-SVLTtsA vector, expressing a thermosensitive oncogene driven by the early promoter-enhancer region of the gliotropic GS/B variant of the papovavirus JC. The proliferation and differentiation of two clonal cell lines have been studied. The cells of these lines display the morphology of primary Schwann cells and express Schwann cell differentiation markers such as the S-100 protein, laminin, the low-affinity receptor to nerve growth factor and the glial fibrillary acidic protein. One of the lines is able to differentiate further. Indeed, in the presence of dorsal root ganglion neurones, the cells synthesize the myelin Po protein and are capable of some myelination, although to a lesser extent than secondary Schwann cells.