Loss of heterozygosity (LOH) allows the expression of recessive mutation in tumor suppressor genes (TSG). Therefore, on the basis of Knudson's`two-hit' hypothesis for TSG inactivation, the detection of a high LOH frequency in a chromosomal region is considered critical for TSG localization. One of these LOH regions in breast cancer is 16q22.1, which has been suggested to re¯ect the involvement of E-cadherin (E-cad), a cell ± cell adhesion molecule. To con®rm the tumorigenic role of Ecad, 81 sporadic invasive ductal carcinomas (IDCs) of the breast were tested for the`two hits' required to inactivate this gene. A high frequency (37.3%) of LOH was detected in 67 informative tumors, but no mutation was found. To examine the possibility that transcriptional mechanisms serve as the second hit in tumors with LOH, speci®c pathways, including genetic variant and hypermethylation at the promoter region and abnormal expression of positive (WT1) and negative (Snail) transcription factors, were identi®ed. Of these, promoter hypermethylation and increased expression of Snail were found to be common (435%), and to be strongly associated with reduced/negative E-cad expression (P50.05). However, unexpectedly, a signi®cantly negative association was found between the existence of LOH and promoter hypermethylation (P50.05), which contradicts the`two-hit' model. Instead, since they coexisted in a high frequency of tumors, hypermethylation may work in concert with increased Snail to inactivate E-cad expression. Given that E-cad is involved in diverse mechanisms, loss of which is bene®cial for tumors to invade but may also trigger apoptosis, this study suggests that maintaining a reversible mechanism, either by controlling the gene at the transcriptional level or by retaining an intact allele subsequent to LOH, might be important for E-cad in IDC and may also be common in TSGs possessing diverse functions. These ®ndings provide clues to explain why certain TSGs identi®ed by LOH cannot ful®l the two-hit hypothesis. Oncogene (2001) 20, 3814 ± 3823.