The induction of antibody response in syngeneic rats by the Gross virus cell surface antigen (GCSAa) was dependent on the presentation of GCSAa into liposomes made from distearoylphosphatidylcholine (DSPC). GCSAa liposomes made from dimyristoylphosphatidylethanolamine (DMPE) were nonimmunogenic, even when used as anamnestic immunogens. Spleen cells, from rats twice immunized with GCSAa-DSPC-liposomes and used to transfer the anti-GCSAa immune response into naive recipients after a tertiary immunostimulation in vitro in the presence of naive peritoneal exudate cells (PEC), responded to soluble GCSAa only after irradiation at 500 rds and to GCSAa-DMPE-liposomes only when indomethacin was added during the in vitro stimulation. The preincubation of these cells with empty DMPE liposomes or the addition of supernatant from PEC fed with DMPE liposomes abrogated the response to GCSAa-DSPC liposomes. Using a specific radioimmunoassay, prostaglandin E2 was demonstrated to be produced by PEC when fed with DMPE liposomes, and not when fed with DSPC liposomes. This prostaglandin E2 secretion by PEC induced by DMPE liposomes was inhibited by indomethacin.