Sprague-Dawley and Fischer rat embryo cells became spontaneously transformed about 20 passages after release of endogenous ecotropic type C virus (SD-RaLV and F-RaLV). The virus-producing transformed cells showed loss of contact inhibition, increased growth rate, and tumorigenicity in vivo. Exogenous infection of other Fischer rat embryo cultures in early passage with SD-RaLV and F-RaLV markedly accelerated their rates of transformation.