PG-Lb was originally characterized as a small chondroitin/dermatan sulphate proteoglycan expressed preferentially in the zones of flattened chondrocytes in developing chick limb cartilage. The occurrence of this proteoglycan in mammalian cartilage has been shown by the isolation of a cDNA clone from mouse cartilage cDNA library [Kurita, Shinomura,Ujita, Zako, Kida, Iwata and Kimata (1996) Biochem. J. 318, 909-914]. To understand the regulation mechanisms for such a unique expression, we have investigated a genomic DNA structure of the PG-Lb gene. The gene is composed of seven exons and six introns spanning more than 50 kb. The leucine-rich repeats are encoded from exon V to exon VII. The transcription initiation site has been determined by rapid amplification of the cDNA ends ('5'-RACE'). The possible TATA box was detected about 90 bp upstream of the adenosine residue that was numbered as position +1. Further analyses of 1.5 kb of the 5' flanking region and 2.2 kb of the first intron have revealed several potential binding motifs for transcription factors such as Sox 5 and 9. The presence of those sequences in the PG-Lb gene was discussed in relation to the unique expression of this proteoglycan. The chromosomal localization of the murine PG-Lb gene was determined to be on the mouse chromosome 10 by the fluorescence-in-situ-hybridization ('FISH') method.