Abstract: Cell culture conditions were developed which maintain the nerve cells of the retina in well-defined, serum-free conditions. The molecular factors that stimulate axonal regeneration from these neurons were characterized. The glial sheath cells that surround the axons of the optic nerve release two molecules that trigger and sustain nerve regeneration. One of the molecules is referred to as axogenesis factor 1 (AF-1), and is a low molecular weight polypeptide with a size in the range of 1000 daltons. The second molecule, AF-2, is a larger protein with a size of approximately 12,000 daltons. Studies indicate that these factors are strongly involved in CNS regeneration, and are therefore useful in the treatment of spinal cord and other nervous tissue damage.