The major modification of vertebrate DNA occurs at thedinucleotide CpG. Approximately 60% -90% of CpGs aremethylated at the 5 position of cytosine while the rest areunmodified. A general consensus view derived from analyses oftissue specific genes and transfection studies is that methylatedDNA affects the formation of nuclease-resistant chromatin andleads to repression of gene activity (1,2,3,4). In native chromatinit has been demonstrated that m5C is refractory to digestion bymicrococcal nuclease (MNase) and to nucleases that can cleaveat CpG (5,6). One model which can accomodate both generepression and altered chromatin proposes that there are factorsin the nucleus which bind differently to methylated and to nonmethylated DNA. These factors might bind to a methylated geneleading to an altered chromatin structure which would in turndeny access to the transcription machinery (6).