Most vaccines and diagnostic reagents for viral diseases are manufactured using infectious agents, making them costly and dangerous to produce. Using recombinant DNA technology, it should be possible to overcome these problems by synthesizing viral immunogens and antigens in vitro. To be useful, these in vitro systems need to be able to produce the immunologically relevant viral components in an authentic form, which may require the in vitro systems to duplicate the posttranslational processing pathways that contribute to viral antigen formation. These posttranslational events in antigen formation may be particularly important in the synthesis of envelope glycoprotein structures, especially those that are heterodimeric. Production of recombinant DNA-derived viral surface proteins in a virus-like particulate form using eukaryotic cells has been reported for several enveloped viruses (1, 4, 5, 26, 27, 31–33). Since virion maturation may be driven by the ability of the individual envelope proteins to self-assemble, some viral proteins may self-assemble and be released from cells transfected with their genes, greatly facilitating their production and purification. We have studied the flavivirus Japanese encephalitis virus (JEV) as a model for production of recombinant viral proteins (16–19, 21, 29). The flavivirus virion consists of a nucleocapsid structure surrounded by a lipid bilayer containing an envelope (E) glycoprotein and a nonglycosylated membrane (M) protein (6). The E protein is the major surface protein, with a role in receptor binding and membrane fusion, and it is known to contain many protective epitopes (11). The M protein is found in infected cells as a glycosylated precursor, premembrane (prM). In the process of virion maturation in vertebrate cells, provirion particles are formed when portions of endoplasmic reticulum membrane containing prM and E envelop nucleocapsids consisting of the capsid (C) protein and genomic RNA (6). These poorly infectious provirions accumulate in the lumen of the exocytic pathway, and during virion maturation, prM is cleaved to M by a cellular protease, furin, located in the trans-Golgi network (37). This maturation cleavage event is accompanied by changes in oligomerization of prM/M and E that is essential for development of the characteristics of mature virions, including high infectivity, hemagglutination (HA) activity, and fusion activity (37). We have demonstrated that cells expressing the JEV prM and E genes are able to produce subviral extracellular particles (EPs) in a system using a vaccinia virus vector for gene delivery (18, 29). Biochemical and morphological analyses of EPs obtained from HeLa cells infected with a recombinant vaccinia virus encoding prM and E (vP829) indicated that EPs are empty viral particles composed of approximately 20-nm-diameter spherical membrane vesicles containing prM/M and E embedded in a lipid bilayer without a nucleocapsid, similar to slowly sedimenting hemagglutinin (SHA) particles found in culture fluids harvested from cells infected with JEV (19). Antigenic analyses using a panel of monoclonal antibodies indicated that E contained in EPs possesses conformational structures equivalent to those of the authentic E contained in the JEV virion (16). Mouse experiments indicated that EPs are able to induce neutralizing antibody and protective immunity (19) and, consistent with their particulate nature, virus-specific cytotoxic T lymphocytes (21). An enzyme-linked immunosorbent assay (ELISA) using EPs showed a sensitivity and specificity similar to those of the neutralization assay for testing human sera, demonstrating their usefulness as immunodiagnostic reagents (17). In spite of these promising features, however, EPs purified from culture fluid of vP829-infected cells contained small amounts of vaccinia virus antigens, including infectious virus (17, 19), that could complicate their use. Contamination of antigens and/or infectious particles derived from the vector virus is an unavoidable problem in systems using a virus vector for gene delivery, but the problem can be solved by delivery of genes using a nonvirus vector such as a plasmid. Establishment of continuously expressing eukaryotic cell lines (14) would be an ideal way to produce viral proteins in terms of safety and yield. The ability of the cells to stably produce antigens without loss of cell viability might also provide a greater yield of viral protein products relative to transient expression systems based on virus vectors. However, a potential obstacle in the generation of stable EP-producing cell lines is that EPs could have toxic effects on cells expressing large amounts of these particles. One cause of this type of toxicity could result from the known cell-fusing activity of the flavivirus E protein. In particular, fusion from within has been reported to occur in flavivirus-infected cells (12, 39), and fusion from without has been reported for purified virions (10, 12, 38) and EPs (34). Thus, toxic effects of fusion due to EP production could prevent the establishment of a cell line stably expressing large amounts of EPs. In this article, we report the establishment of a cell line continuously expressing JEV EPs which was developed by transfecting CHO-K1 cells with a plasmid encoding the JEV E proteins and a form of prM containing a modification of the amino acid sequence at the furin cleavage site. The mutation was designed to suppress cleavage from prM to M, eliminating the fusion activity of the EPs, allowing us to overcome the difficulty in generating cells continuously expressing EPs at a high level. Our cell line, designated the F-cell line, produced a relatively large amount of EPs without any contamination with infectious materials. EPs purified from culture fluids of F cells were immunogenic in mice and useful as an antigen for ELISA, indicating potential application of EPs to production of subunit vaccines and diagnostic tests for JE.