Assembly of virus particles is an essential step for a productive viral replication cycle. The intracellular sites of virus assembly vary among different viruses (35,43). Assembly of enveloped viruses requires complex interactions between the lipid envelope, envelope proteins, and internal viral components. Budding of enveloped viruses, through cellular membranes, involves the process of envelopment of the viral nucleocapsid. The interaction of the viral nucleocapsid with envelope proteins is believed to drive the incorporation of the nucleocapsid in enveloped viruses (41). Indeed, interactions between viral envelope protein and nucleocapsid protein are required for the formation of alphaviruses (25,45). In other enveloped viruses, such as rhabdovirus and paramyxovirus, a matrix protein mediates the interaction between the viral envelope, envelope proteins, and the nucleocapsid (6, 36). Studies of viral assembly mechanisms not only provide an excellent model system for understanding the macromolecular interactions in cells, but also offer valuable information for the development of preventive and therapeutic agents against viral infection.Coronavirus is an enveloped virus containing a large, positive-stranded RNA genome. The prototypic coronavirus, mouse hepatitis virus (MHV), contains three envelope proteins, M, E, and S. S protein forms 180/90-kDa peplomers that bind to receptors (9) on coronavirus-susceptible cells and induce cell fusion (7, 12). M protein, the most abundant glycoprotein in the virus particle and in infected cells, is characterized as having three domains: a short N terminal ectodomain, a triple-spanning transmembrane domain, and a C-terminal endodomain (1). E protein is present only in minute amounts in infected cells and in the virus envelope (13,23,37,47,51), yet it is an essential protein for coronavirus envelope formation; coronavirus-like particles (VLPs) are assembled and released from cells that express both E and M proteins (4, 49). Furthermore, expression of E protein alone results in the production of membrane vesicles, which contain E protein (27). E protein also affects coronavirus morphogenesis, as it was shown that MHV mutants, encoding mutated E protein, are morphologically aberrant compared to wild-type MHV (10). Viral genomic RNA and N protein are found inside the viral envelope (44). A generally accepted model of coronavirus structure proposes that viral genomic RNA and N protein form a helical nucleocapsid (44).In coronavirus-infected cells, genomic-size RNA, mRNA 1, and six to eight species of subgenomic mRNAs are produced. These virus-specific mRNAs comprise a nested set with common 3Ј cotermini (20,22) and a common leader sequence of approximately 60 to 80 nucleotides at the 5Ј end (19,42). Each of the coronavirus-specific proteins is translated from only one of these mRNAs. Among the mRNAs, only mRNA 1 is efficiently packaged into coronavirus particles, while subgenomic mRNAs either are not incorporated into virus particles (21,30,32) or are incorporated at a low effic...