It has been a controversial issue as to how many DNA cytosine methyltr
ansferase mammalian cells have and whether de novo methylation and mai
ntenance methylation activities are encoded by a single gene or two di
fferent genes, To address these questions, we have generated a null mu
tation of the only known mammalian DNA methyltransferase gene through
homologous recombination in mouse embryonic stem cells and found that
the development of the homozygous embryos is arrested prior to the 8-s
omite stage, Surprisingly, the null mutant embryonic stem cells are vi
able and contain low but stable levels of methyl cytosine and methyltr
ansferase activity, suggesting the existence of a second DNA methyltra
nsferase in mammalian cells, Further studies indicate that de novo met
hylation activity is not impaired by the mutation as integrated provir
us DNA in MoMuLV-infected homozygous embryonic stem cells become methy
lated at a similar rate as in wild-type cells. Differentiation of muta
nt cells results in further reduction of methyl cytosine levels, consi
stent with the de novo methylation activity being down regulated in di
fferentiated cells, These results provide the first evidence that an i
ndependently encoded DNA methyltransferase is present in mammalian cel
ls which is capable of de novo methylating cellular and viral DNA in v
ivo.