To study molecular events involved in B lymphocyte development and V(D)J re
arrangement, we have established an efficient system for the differentiatio
n of embryonic stem (ES) cells into mature Ig-secreting B lymphocytes. Here
, we show that B lineage cells generated in vitro from ES cells are functio
nally analogous to normal fetal liver-derived or bone marrow-derived B line
age cells at three important developmental stages: first, they respond to F
lt-3 ligand during an early lymphopoietic progenitor stage; second, they be
come targets for Abelson murine leukemia virus (A-MuLV) infection at a pre-
B cell stage; third, they secrete Ig upon stimulation with lipopolysacchari
de at a mature mitogen-responsive stage. Moreover, the ES cell-derived A-Mu
LV-transformed pre-B (EAB) cells are phenotypically and functionally indist
inguishable from standard A-MuLV-transformed pre-B cells derived from infec
tion of mouse fetal liver or bone marrow. Notably, EAB cells possess functi
onal V(D)J recombinase activity. In particular, the generation of A-MuLV tr
ansformants from ES cells will provide an advantageous system to investigat
e genetic modifications that will help to elucidate molecular mechanisms in
V(D)J recombination and in A-MuLV-mediated transformation.