Embryonic stem cells (ES) are pluripotent and may therefore serve as a source for the generation of specific cell types required for future therapies based on cell replacement. The isolation of defined cell populations from a certain lineage or tissue is a prerequisite for the analysis of the potential of such ES-derived cells in animal transplantation studies. Here, using the Cre/loxP system, we report the generation of murine ES cells conditionally expressing the hrGFP gene at the cell surface. Such ES cells can be differentiated in vitro into neurons displaying GFP activity in neurites. Transgenic mice derived from these ES cells permit the targeting of GFP-expression to specific tissues and provide material from the three germ layers suitable for molecular and biochemical analysis.