The inducible costimulator receptor (ICOS) is a third member of the CD28 receptor family that regulates T cell activation and function. ICOS binds to a newly identified ligand on antigen presenting cells different from the CD152 ligands CD80 and CD86. We used soluble ICOSIg and a newly developed murine anti-human ICOS ligand (ICOSL) monoclonal antibody to further characterize the ICOSL during ontogeny of antigen presenting cells. In a previous study, we found that ICOSL is expressed on monocytes, dendritic cells, and B cells. To define when ICOSL is first expressed on myeloid antigen presenting cells, we examined ICOSL expression on CD34 ؉ cells in bone marrow. We found that CD34 bright cells regardless of their myeloid commitment were ICOSL ؊ , whereas ICOSL was first expressed when CD34 expression diminished and the myeloid marker CD33 appeared. However, acute myeloid leukemia cells were ICOSL-negative, whereas among B-cell malignancies only some cases of the most mature tumors such as prolymphocytic leukemia and hairy cell leukemia were positive. Next, we investigated purified CD34؉ hematopoietic progenitor cells that did not constitutively express ICOSL but were induced to express ICOSL within 12 h after granulocyte/macrophage colony-stimulating factor/tumor necrosis factor ␣ (TNF-␣) stimulation. Interestingly, ICOSL was induced prior to CD80/CD86 induction on CD34؉ cells so that ICOSL was expressed in the absence of CD80/CD86. This suggests that ICOSL is an early differentiation marker along the monocytic/ dendritic maturation pathway. Induction of ICOSL was dependent on TNF-␣ and was regulated via NF-B as revealed by use of inhibitors specific for IB␣ phosphorylation such as BAY 11-7082 and BAY 11-7085. The antigen presenting capacity of TNF-␣ stimulated CD34 ؉ cells was strongly inhibited by ICOSIg fusion proteins or by NF-B inhibition. Thus, TNF-␣-induced ICOSL expression seemed to be functionally important for the costimulatory capacity of CD34 ؉ hematopoietic progenitor cells.Successful antigen-specific T cell stimulation via the T cell receptor (TCR) 1 -CD3 complex (TCR⅐CD3) requires costimulatory signals by the CD28 receptor family. During this process, CD28 or CD152 (CTLA-4) expressed on T cells is engaged by the ligands CD80 (B7-1) or CD86 (B7-2) expressed on antigen presenting cells (1, 2). The inducible costimulator (ICOS) is a recently defined third member of the CD28 family, but unlike CD28, it is not constitutively expressed on T cells (3). ICOS expression requires the activation of T cells via the TCR⅐CD3 complex. ICOS shows structural homology to CD28 and CD152, but it differs in the MYPPPY homology domain necessary for binding of CD28/CD152 to CD80 or CD86 (4). Engagement of ICOS, like CD28, can mediate potent costimulation of T cells (3,5), and promotes T cell proliferation at levels similar to those observed after CD28 triggering but without the accompanying increase in IL-2 production. Instead, ICOS up-regulates expression of IL-4, IL-5, GM-CSF, IFN-␥, TNF-␣, and IL-10 (3, 6). Blocking t...