Many proteins containing domains related to epidermal growth factor (EGF) function in intercellular interactions that mediate specification of cell fate. We have used in situ hybridization to show that the expression of two EGF-related genes (SpEGF I and SpEGF II) is restricted to the same subset of ectodermal cells in sea urchin pluteus larvae. However, the concentration of EGF I mRNA in different epithelial cells of aboral ectoderm and postoral facial epithelium is constant while that of EGF II mRNA is highly modulated. RNase protection assays show that both genes are activated during the period when ectoderm funder cells are established, i.e., between fourth and fifth and between fifth and sixth cleavages for EGF I and EGF II, respectively. By mesenchyme blastula stage EGF I mRNA reaches maximum abundance (800-1000 copies/expressing cell) as a result of a high transcription rate, while EGF II mRNA peaks at about half that concentration by gastrula stage. EGF I expression begins at early stages of oogenesis while EGF II expression appears to be confined to embryogenesis.