Rat melanin-concentrating hormone (MCH) is a homolog of the peptide first isolated from salmon pituitary glands which produces melanosome aggregation within melanophores of teleost fish as well as interacting with the hypothalamic-pituitary axis. We have previously characterized the rat and human MCH counterparts as identical 19-amino acid peptides showing approximately 70% peptide sequence identity to salmon MCH. Immunoreactivity for MCH has been found in high concentrations within cell bodies of the dorsolateral hypothalamus, with projections to the hippocampus, brainstem, posterior pituitary, and cerebral cortex. We have adapted a cultured cell model for studying MCH secretory responses of hypothalamic cells obtained from 7-day-old rats. MCH and the MCH precursor-derived peptide neuropeptide glutamic acid isoleucine (NEI) were secreted from these cells after 2 days of culture and for up to 22-24 days of culture. The secreted peptides were confirmed by HPLC analysis and RIA to be identical to MCH isolated from rat hypothalamic tissue and to the sequences of MCH and NEI predicted from the MCH precursor. MCH and NEI secretion was stimulated 3- to 5-fold by 8-bromo-cAMP and 8-bromo-cGMP. Dexamethasone produced a dose-dependent increase in cell content of both MCH and NEI and an increase in MCH secretion. The present study is the first to demonstrate the existence of the predicted peptide NEI in a biological system and indicates that cultured neonatal rat hypothalamic cells are a useful model for the study of MCH/NEI release in vitro.