Clones of chicken embryo fibroblasts exogenously infected with the endogenous avian retrovirus were analyzed to examine the replication of this virus in permissive (Gr+) and nonpermissive (Gr-) cells. The results demonstrate that the endogenous virus was capable of infecting both Gr+ and Grcells with equal efficiency. Infected clones of Gr+ and Gr-cells differed, however, in two significant ways. At the time of their initial characterization, the Gr+ clones produced 100to 1,000-fold more virus than the Grclones. Further, the amount of virus produced by Gr+ clones did not change significantly during serial passage of the cells. In contrast, continued passage of the infected Gr-clones resulted in a gradual increase in the amount of virus produced. Individual clones of infected Gr-cells produced infectious virus at rates that, initially, differed by a factor of more than 104. The large differences in the production of virus by these