In rat hepatoma cells the synthetic glucocorticoid dexamethasone causes a 3-fold increase in the activity of the plasma membrane enzyme alkaline phosphodiesterase I (oligonucleate 5'-nucleotidohydrolase, EC 3.1.4.1). The data are consistent with an induction phenomenon mediated by the glucocorticoid receptor involved in tyrosine aminotransferase induction. The Glucocorticoids modify several properties of cellular plasma membranes. One of the earliest effects of these hormones in lymphoid cells is an inhibition of hexose, nucleoside, and amino acid uptake (1). Glucocorticoid hormones also decrease hexose uptake by fibroblasts (2) and by adipocytes (3). In rat hepatoma tissue culture (HTC) cells, glucocorticoids promote cell adhesiveness and the reappearance of surface antigens present in normal hepatocytes (4). These hormones also inhibit the release of plasminogen activator (5) and the uptake of aminoisobutyric acid (6, 7), and they decrease the number of cell surface microvilli (8). Such modifications of HTC cell membrane functions have been considered as part of a program of glucocorticoid-induced reversal of the transformed phenotype (8). The biochemical reactions underlying these effects have not been elucidated.Glucocorticoid hormones appear to produce many of their physiological effects through a stimulation of the activity of specific enzymes in target cells, most often as a result of an increase in their rate of synthesis (9). This prompted us to examine whether enzymes located in the plasma membrane could be under glucocorticoid control, an effect that might be related to one or more of the phenomena described above. This possibility was investigated in HTC cells wherein the interaction of steroids with intracellular receptors and the ensuing induction of tyrosine aminotransferase (L-tyrosine:2-oxoglutarate aminotransferase, EC 2.6.1.5) have been extensively studied as a model of glucocorticoid action.(10). In this system the hormonal response is very specific in that the number of glucocorticoidsensitive gene products is quite limited (11). Only seven proteins are reproducibly induced, including two unidentified membrane proteins. We show here that, in HTC cells, glucocorticoid hormones specifically increase the activity of alkaline phosphodiesterase I (oligonucleate 5'-nucleotidohydrolase, EC 3.1. Enzyme Assays. For determination of alkaline phosphodiesterase I, frozen HTC cells were sonicated for 10 sec (Branson Sonifier) in an aqueous solution of Triton X-100 (1 g/liter). Enzyme activity was determined as described by Beaufay et al. (15) by incubating the sample for 10 min at 250C in a mixture containing 0.1 M glycine-NaOH (pH 9.6), 2 mM zinc acetate, and 3 mM p-nitrophenylthymidine 5'-phosphate (from Sigma or Boehringer Mannheim). The reaction rate was constant for at least 20 min and the assay was linear with protein concentration up to 120 ,ug per assay. For determination of tyrosine aminotransferase activity, cells were sonicated as described above in 50 mM potassium phosphate buffer...