Transcription of the rat α1-acid glycoprotein (AGP) gene is induced by glucocorticoids. In addition to the glucocorticoid response element which maps to bases− 120 to− 107, sequences located between bases− 106 to− 42 have been shown to be necessary for hormone induction. We have previously identified multiple sites of C/EBP interaction with the AGP promoter in the region− 106 to− 64. In this study, we purify and identify a C/EBP family member, AGP/EBP (LAP), present in the rat hepatoma cell line HTC (JZ. 1) which also binds to the C/EBP recognition sites in this region. Mutations in the recognition sites that prevent binding are analyzed, and the results suggest a positive as well as a possible inhibitory role for AGP/EBP (LAP) in the glucocorticoid induction of the gene in HTC (JZ. 1) cells.