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Testosterone administration to normal male and female rats causes increased erythropoiesis and granulocytosis at the same time that bone marrow and thymus lymphocytic cellularity is being diminished. The volume of peripheral lymphatic tissue is maintained. Germinal center and plasma cell formation is increased and immunological responsiveness and cellular exudation following nonspecific inflammatory stimulus are retained. These various effects of androgen treatment are discussed in light of different theories of marrow lymphocyte function as stem cells.