We used co-cultures of porcine ovarian granulosa cells and mouse adrenocortical tumor cells (Y-1) to examine the kinetics of contact-dependent intercellular signal transfer and to assess the molecular mechanisms employed by this process . Exposure to follicle-stimulating hormone (FSH) caused CAMP-dependent protein kinase dissociation in granulosa cells and, with time, in Y-1 cells if, and only if, they contacted a responding granulosa cell . Y-1 cells close to a granulosa cell but not touching it failed to respond similarly . In reciprocal experiments, co-cultures were stimulated with adrenocorticotropic hormone (ACTH) . Y-1 cells dissociated protein kinase as did granulosa cells in contact with Y-1 cells ; however, granulosa cells that were not in contact with Y-1 cells failed to respond to the hormone . Fluorogenic steroids were secreted by Y-1 cells cultured alone and stimulated with ACTH, but were not secreted by cultures exposed to FSH . Neither hormone caused fluorogenic steroid production by granulosa cells . On the other hand these steroids were secreted in co-cultures stimulated with ACTH and to a lesser degree in co-cultures exposed to FSH . Autoradiography revealed that 1125 -FSH bound only to granulosa cells, never to Y-1 cells, even if they were in contact with an ovarian cell. The possibility of cell fusion was tested by experiments in which Y-1 cell membranes were labeled with cationized ferritin . These cells were then placed in co-culture with ovarian granulosa cells that had previously been allowed to ingest latex spheres . At regions of gap junctions between Y-1 and granulosa cells ferritin remained attached to the adrenal cell membrane and was never observed to migrate to the granulosa cell membrane . From these data, we conclude that hormone specific stimulation of one cell type leads to protein kinase dissociation in heterotypic partners only if they contact a hormone responsive cell. This signal transfer is bidirectional, exhibits temporal kinetics and occurs in the absence of apparent cell fusion . The only structural feature connecting Y-1 and granulosa cells were gap junctions implying they provided the communication channels ; however, alternative mechanisms cannot be excluded. We have not established the identity of the signal being transferred although CAMP is a logical candidate .