Adenosine has dose-dependent biphasic excitatory and inhibitory effects on neurotransmission in the hippocampus. The mechanism of the excitatory action is not known although that of the inhibitory action has been well analyzed. Here we report on the mechanism of excitatory action of adenosine, using hippocampal slices. Studies of intracellular recordings of CA3 pyramidal neurons showed that the amplitude of EPSP was dramatically enhanced by application of adenosine at low concentration (0.1 microM) without changing resting membrane potentials, membrane conductance or the threshold for spike generation by injecting current pulses. On the other hand, the presence of adenosine at a concentration of 0.1 microM during electrical stimulation to the slices increased 1.7 times the release of glutamate, an excitatory neurotransmitter in the hippocampus. These results indicate that the excitatory action of adenosine at low doses is due to the increase of transmitter release.