An intratumoral aromatase model in the ovariectomized nude mouse was developed which simulated the hormone responsive postmenopausal breast cancer patient. MCF-7, human breast cancer cells transfected with the aromatase gene, inoculated into ovariectomized nude mice are able to synthesize sufficient estrogens to enhance cell proliferation and the development of tumors. These tumors are responsive to both antiestrogens and aromatase inhibitors. However, letrozole was found to be more effective than tamoxifen and caused tumor regression, a result not previously noted in nude mice with endocrine treatments. When the aromatase inhibitors were combined with tamoxifen, tumor growth was suppressed to about the same extent as treatment with the aromatase inhibitors alone. Thus, there was no additive or synergistic effects of combining tamoxifen with aromatase inhibitors. These results suggest that letrozole has the potential to be more effective than tamoxifen for achieving greater reduction in estrogenic effects on tumors and uterus in postmenopausal breast cancer patients. In addition, sequential treatment with these agents is likely to be more beneficial to the patient in terms of longer response to treatment.