Tetraploid embryo complementation assay has shown that mouse ES cells alone are capable of supporting embryonic development and adult life of mice. Newly established F 1 hybrid ES cells allow the production of ES cell-derived animals at a high enough efficiency to directly make ES cell-based genetics feasible. Here we report the establishment and characterization of 12 new F1 hybrid ES cell lines and the use of one of the best (G4) in a gain-and loss-of-function genetic study, where the in vivo phenotypes were assessed directly from ES cell-derived embryos. We found the generation of G4 ES cell-derived animals to be very efficient. Furthermore, even after two consecutive rounds of genetic modifications, the majority of transgenic lines retained the original potential of the parental lines; with 10 -40% of chimeras producing ES cell-derived animals/embryos. Using these genetically altered ES cells, this success rate, in most cases, permitted the derivation of a sufficient number of mutants for initial phenotypic analyses only a few weeks after the establishment of the cell lines. Although the experimental design has to take into account a moderate level of uncontrolled damage on ES cell lines, our proofof-principle experiment provides useful data to assist future designs harnessing the power of this technology to accelerate our understanding of gene function.hybrid ͉ tetraploid complementation assay ͉ vasculogenesis ͉ ES cells T he advent of mouse ES cells (1, 2) has revolutionized the genetic approaches addressing gene function. It helped transform the mouse into the ultimate mammalian model system with significant relevance to human biology. Mutating all of the genes in the mouse has become not only feasible but also a substantial international project supported by the European Union, the National Institutes of Health, and Genome Canada (3). Before this effort, thousands of ES cell lines had already been created, each representing a specific mutation, and many more are currently under way. Introduction of these cells back into the mouse through germ-line transmission is a time-, labor-, and cost-intensive endeavor, followed by the tedious task of phenotypic analyses. Therefore, an assay system, which could accelerate the production of mutant embryos or animals and at the same time provide information about in vivo phenotypes for elucidating gene function in normal developmental and pathological processes, would be of major value.Two specific properties of mouse ES cells render them exceptional tools for genetic research: (i) virtually unlimited proliferation capacity and (ii) pluripotent developmental potential. Their proliferation capability leads to the production of large number of cells and therefore the occurrence and the identification of very rare events, such as homologous recombination or gene trap insertion. The pluripotent developmental potential of ES cells allows them to contribute to the germ line when reintroduced into an embryonic environment through chimera formation. However, an additional pro...