Destruction of pancreatic islet -cells in type 1 diabetes appears to result from direct contact with infiltrating T-cells and macrophages and exposure to inflammatory cytokines such as interferon (IFN)-␥, interleukin (IL)-Type 1 diabetes is caused by autoimmune destruction of pancreatic islet -cells. Destruction of -cells appears to result from direct contact with infiltrating T-cells and macrophages and exposure to inflammatory cytokines such as IFN-␥, 1 IL-1, and TNF-␣ that such cells produce (1-5). Insulin replacement by injection, the current treatment, fails to replicate the precise control of fuel homeostasis afforded by normal regulation of insulin secretion in response to glucose and other physiological cues. Islet transplantation has therefore been investigated as an alternative to insulin injection therapy for more than 3 decades (6, 7). Success in this area had been very limited until a recent trial in Edmonton, Alberta, Canada, in which a combination of mild immunosuppressive agents were used in conjunction with freshly isolated islet tissue to achieve insulin independence in seven successive patients studied for up to 14.9 months post-transplant (8).Unfortunately, enthusiasm for this important finding is tempered by the fact that the number of human pancreata available for islet transplantation in the United States is on the order of several thousand per year (6, 7), which does not approach the number of patients that could benefit from this new form of therapy. To deal with this problem, we and others have been attempting to develop a replenishable source of cells that could serve as islet surrogates for cell-based insulin replacement in diabetes (9 -13). One working concept is that immortalized cell lines engineered for robust glucose-stimulated insulin secretion can be transplanted in the context of a cellimpermeant macroencapsulation device, preventing contact of cellular elements of the immune system with the transplanted cells (11). However, because such devices are envisioned to allow rapid exit of insulin, as well as highly efficient equilibration of nutrients, oxygen, and waste products, it is anticipated that soluble mediators of immunological damage such as cytokines or reactive oxygen species will readily gain access to the cells within the device. Thus, development of methods to protect transplanted cells against diffusable, noncellular mediators of immunological destruction may be important for the eventual success of cell-based insulin replacement strategies.Recently, we described a method for selection of cell lines with resistance to the cytotoxic effects of exposure to a mixture of IL-1 and IFN-␥, known mediators of -cell destruction in type 1 diabetes (14). This involved growth of INS-1 insulinoma cells in progressively elevated concentrations of the two cytokines over an 8-week period and selection of surviving cells. The resultant cell line, termed INS-1 res , was 80% viable after 5 days of exposure to the combination of 10 ng/ml IL-1 and 100 units/ml IFN-␥, while less th...