Bone sialoprotein (BSP), an early marker of osteoblast differentiation, has been implicated in the nucleation of hydroxyapatite during de novo bone formation. Prostaglandin E 2 (PGE 2 ) has anabolic effects on proliferation and differentiation of osteoblasts via diverse signal transduction systems. Because PGE 2 increases the proportion of functional osteoblasts in fetal rat calvarial cell cultures, we investigated the regulation of BSP, as an osteoblastic marker, by PGE 2 . Treatment of rat osteosarcoma UMR 106 cells with 3 M, 300 nM, and 30 nM PGE 2 increased the steady state levels of BSP mRNA about 2.7-, 2.5-, and 2.4-fold after 12 h. From transient transfection assays, the constructs including the promoter sequence of nucleotides (nt) ؊116 to ؉60 (pLUC3) were found to enhance transcriptional activity 3.8-and 2.2-fold treated with 3 M and 30 nM PGE 2 for 12 h. 2-bp mutations were made in an inverted CCAAT box (between nt ؊50 and ؊46), a cAMP response element (CRE; between nt ؊75 and ؊68), a fibroblast growth factor 2 response element (FRE; nt ؊92 to ؊85), and a pituitaryspecific transcription factor-1 motif (between nt ؊111 and ؊105) within pLUC3 and pLUC7 constructs. Transcriptional stimulation by PGE 2 was almost completed abrogated in constructs that included 2-bp mutations in either the CRE and FRE. In gel shift analyses an increased binding of nuclear extract components to double-stranded oligonucleotide probes containing CRE and FRE was observed following treatment with PGE 2 . These studies show that PGE 2 induces BSP transcription in UMR 106 cells through juxtaposed CRE and FRE elements in the proximal promoter of the BSP gene.Prostaglandins are considered important local factors that modulate bone metabolism through their effects on osteoblastic cells and osteoclasts (1, 2). Prostaglandin E 2 (PGE 2 ), 1 a major eicosanoid produced by osteoblasts, is a potent stimulator of bone resorption (3) that can stimulate the formation of osteoclast-like multinuclear cells in mouse bone marrow cultures (4, 5). The effects of PGE 2 on osteoclastogenesis are, at least in part, mediated by osteogenic cells, which express macrophage colony-stimulating factor (6) and receptor activator of nuclear factor B ligand (RANKL) (7) that promote, and osteoprotegerin, a decoy receptor for RANKL (8), that suppresses osteoclast formation. PGE 2 has been shown to stimulate RANKL and inhibit osteoprotegerin production (7, 9) and also increases production of interleukin-6, which can further enhance osteoclastogenesis (10 -12). In contrast, studies have revealed that PGE 2 also has bone-forming activity (2, 13). Treatment of male, female, and overiectomized mice with PGE 2 increases bone mass in vivo (14), whereas PGE 2 stimulates collagen and DNA synthesis and induces bone growth in calvarial organ (15) and cell cultures in vitro (16, 17). However, PGE 2 can either stimulate or inhibit cellular growth and differentiation of osteoblastic cells depending on PGE 2 concentration (15,18,19).To explain the diverse effects of PGE 2 , th...