Event-related potentials (ERPs) triggered by three different faces (unfamiliar, famous, and the subject's own) were analyzed during passive viewing. A familiarity effect was defined as a significant difference between the two familiar faces as opposed to the unfamiliar face. A degree of familiarity effect was defined as a significant difference between all three conditions. The results show a familiarity effect 170 ms after stimulus onset (N170), with larger amplitudes seen for both familiar faces. Conversely, a degree of familiarity effect arose approximately 250 ms after stimulus onset (P2) in the form of progressively smaller amplitudes as a function of familiarity (subject's face < famous face < unfamiliar). These results demonstrate that the structural encoding of faces, as reflected by N170 activities, can be modulated by familiarity and that facial representations acquire specific properties as a result of experience. Moreover, these results confirm the hypothesis that N170 is sensitive to face versus, object discriminations and to the discrimination among faces.