The X gene product of the hepatitis B virus (HBV) has been expressed transiently in HepG2 cells, and the 17-kilodalton protein has been detected by Western (immuno-) blot analysis. Cotransfection of the X gene with the long terminal repeat of human immunodeficiency virus type 1 or 2 results in a stimulation of long terminal repeat-directed expression that is higher than the X-induced stimulation of the HBV enhancer linked to either autologous promoter or to the heterologous simian virus 40 promoter. A frameshift mutation abolished this transactivation. In vitro nuclear transcription assays revealed that HBV X acts at the transcriptional level. The carboxy terminus of the HBV X protein does not seem to be necessary for its transactivating activity, as demonstrated by using HBV X protein deletion mutants.