We use a U(2) x U(1) horizontal symmetry in order to construct supersymmetr
ic models where the flavor structure of both quarks and leptons is induced
naturally. The supersymmetric flavor changing neutral currents problem is s
olved by the degeneracy between sfermions induced by the U(2) symmetry. The
additional U(1) enables the generation of mass ratios that cannot be gener
ated by U(2) alone. The resulting phenomenology differs from that of models
with either abelian or U(2) x GUT symmetries. Our models give rise to inte
resting neutrino spectra, which can incorporate the Super-Kamiokande result
s regarding atmospheric neutrinos. (C) 1998 Elsevier Science B.V. All right
s reserved.