The intracellular distribution of herpes virus in embryonic liver was investigated. 80 per cent of the virus was found in the cytoplasm in what appears to be a form uncombined with mitochondria or nuclei. A significant amount of the virus (16 per cent) was found bound to the mitochondria by an intimate attachment. Furthermore evidence was obtained that the mitochondria from liver tissue undergo a selective deterioration when infected with herpes virus. The concept is advanced that these organelles function in the development of virus.

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