Growth and differentiation of animal cells are influenced by a number of interacting local and circulating protein factors. Several such growth factors, or morphogenetic proteins, that affect hard tissue regeneration and repair have been isolated from bone [1–3]. Bone matrix is a complex milieu consisting of serum, cell, and hydroxyapatite binding proteins, bioactive agents, and other proteins whose functions are not yet known. Most of the growth factors can be dissociated from the decalcified collagen matrix only by using chaotropic solvents such as guanidine hydrochloride or urea [4].This extraction removes virtually all noncollagenous proteins from the matrix, producing a nonselective portfolio of proteins, of which growth factors are only a small percentage. A series of chromatographic separations are then required to isolate the morphogenetic proteins from the mixture [5]. Recently, a process has been developed that permits selective extraction of certain growth factors from demineralized bone and produces a water-soluble extract of collagenous and noncollagenous proteins. When placed in an orthotopic site in the rat, the extract exhibits pronounced osteogenic activity and has a surface-adherent property that may be exploited in the coating of allograft bone or osteoprosthetic implants to facilitate osseointegration. The objective of this study is to observe the in vivo effects of this extract on proliferation and synthetic activity of cartilage cells of the chick embryo.