By using recombinase-mediated cassette exchange, a method that allows integration of single copies of different constructs at the same predetermined chromosomal location, several expression cassettes have been integrated at a randomly chosen locus in the genome of mouse erythroleukemia cells. The cassettes studied contain the human -globin promoter fused to lacZ coding sequences either alone or linked to DNase I-hypersensitive site HS2, HS3, or HS234 (a large locus control region fragment containing HS2, HS3, and HS4) of the human -globin locus control region. Analysis of expression of these cassettes revealed mosaic expression patterns reminiscent of, but clearly different from, position effect variegation. Further investigations demonstrated that these mosaic expression patterns are caused by dynamic activation and inactivation of the transcription unit, resulting in oscillations of expression. These oscillations occur once in every few cell cycles at a rate specific for the enhancer present at the locus. DNase I sensitivity studies revealed that the chromatin is accessible and that DNase-hypersensitive sites were present whether or not the transcription unit is active, suggesting that the oscillations occur between transcriptionally competent and transcriptionally active chromatin conformations, rather than between open and closed chromatin conformations. Treatment of oscillating cells with trichostatin A eliminates the oscillations only after the cells have passed through late G 1 or early S, suggesting that these oscillations might be caused by changes in histone acetylation patterns.It has long been known that expression of transfected or translocated genes is not always stable and is subject to position effects. In metazoans, the two best-studied such phenomena are heterochromatin-induced position effect variegation (PEV) (24), in which transgenes are clonally inactivated in a fraction of a cell population, and extinction of transgenes in cell culture (50) and transgenic animals (15,35,41,47). We have recently developed a novel method called recombinasemediated cassette exchange (RMCE) that allows integration of single copies of different expression cassettes at the same predetermined chromosomal locations (1). This method is ideally suited to study position effects and gene regulation because interesting chromosomal locations can be identified and then revisited by insertion of different expression cassettes.To study position effects and means to prevent them, we have used as a model components of the human -globin gene cluster. This cluster is located on chromosome 11 and contains five genes that are sequentially expressed during development and are regulated by the locus control region (LCR) (14,34,44). The LCR is located 6 to 20 kb upstream of the ε-globin gene and consists of five DNase I-hypersensitive sites (HSs) first reported by Tuan et al. (48). The importance of the LCR for regulation of the globin genes was inferred from studies of naturally occurring deletions of the LCR that are associate...