During metamorphosis, the steroid hormone 20-hydroxyecdysone induces morphogenesis of imaginal discs, including the formation of appendages. IMP-E2 is an ecdysone-dependent, single-copy Drosophila gene, whose transcripts accumulate rapidly in imaginal discs in response to the hormone. The IMP-E2 product is secreted at the apical surface of the disc epithelium in association with disc morphogenesis. The product is also secreted apically by the embryonic ectoderm during mid embryogenesis. The deduced primary structure of the protein reveals the presence of 16, short 3-amino acid repeat motifs (such as EIK and EVK) toward the N-terminal end of the protein, and three long, uncharged domains, containing 43 to 78 residues each, toward the C-terminal end. The predicted structure of the protein suggests that it may participate in multimolecular aggregates. Although the temporal and spatial expression of the IMP-E2 gene are consistent with a role in disc morphogenesis, its specific functions remain to be determined.