Fibroblast cell lines were established from pulmonary explants derived from inbred CBA T6T6 mouse embryos. Cell lines controlled for the absence of spontaneous transformation were treated with 20=methylcholenthrene (0, 1 microgram/ml). The altered biological characteristics were studied during the process of the malignant transformation by the comparison of the untreated and 20-methylcholanthrene pretreated cell populations: the loss of contact inhibition and the connection between the malignant transformation and the arylhydrocarbon hydroxylase enzyme activity were investigated. No changes in the cell proliferation rate could be found following malignant transformation, but an increased resistance against altered circumstances was observed. In the course of passages, a gradual decreases in aryl hydrocarbon hydroxylase activity of the untreated line was seen, which disappeared or significantly decreased following 20-methylcholanthrene treatment, compared to the controls.