Infection of domestic rabbits with cottontail rabbit papillomavirus (CRPV) causes local papillomas which progress to carcinomas in more than 80% of cases. This animal model system therefore allows the identification of molecular mechanisms required for the induction and progression of epithelial tumors. The viral E2 protein stimulates both viral DNA replication and transcription, and these functions can be genetically separated. We introduced the respective mutations into CRPV E2 and found, in line with published data for other papillomavirus E2 proteins, that mutation of the highly conserved amino acid 37 or 73 resulted in replicationcompetent but transactivation-deficient E2 proteins, whereas E2 proteins with mutations at residue 39 were replication deficient and transactivation competent. The R37A, I73L, and I73A E2 mutants, showing a loss of transactivation function, and the R37K E2 mutant, which is still transactivation competent, were introduced into the whole genome of CRPV, which was then injected into the skin of rabbits. Strikingly, the ability to induce tumors within 6 weeks was abolished by each of the E2 mutations, in contrast to the tumor induction rate (93%) obtained with wild-type CRPV DNA. Two small papillomas induced by mutant E2 I73A CRPV DNA appeared as late as 12 or 24 weeks postinjection, were significantly smaller, and showed no further extension of growth. These data suggest that functionally conserved amino acids in the transactivation domain of E2 are also required for the induction and growth of epithelial tumors in rabbits infected with CRPV. A suitable animal model in which to investigate molecular processes involved in tumor induction and progression by papillomaviruses is the New Zealand White rabbit, which develops local papillomas within 3 to 8 weeks after injection of cottontail rabbit papillomavirus (CRPV) DNA into the skin (45). In contrast to the productive virus infection observed in the cottontail rabbit, which is the natural host, infection of New Zealand White rabbits with CRPV causes an abortive infection (45). As many as 80% of the initially benign epithelial tumors progress to carcinomas within the next 6 to 14 months, and these finally metastasize without the need for cofactors (45). Previous studies using deletion or insertion mutations within the genome have shown that all open reading frames (ORF) of CRPV, except for E5 and L2, are required for tumor induction in rabbits (5,6,25,26,46). In contrast, tissue culture experiments have demonstrated that expression of CRPV LE6 and E7 is sufficient to induce anchorage-independent growth of NIH 3T3 cells and to induce tumors in nude mice injected with the respective cell lines (25). When viral transcripts from benign and malignant tumors were compared by a number of different techniques, no major quantitative or qualitative differences that would have been indicative of a prominent role of a single viral gene product could be observed (27,29,48).A master regulator of early gene expression and viral DNA replication is the m...