Plasma membranes prepared from pig, mouse and rat liver incubated with insulin resulted in the release of at least two insulin chemical mediators. These mediators, identified as fractions 1 and 3, were found to inhibit cAMP level in response to lipolytic hormone and forskolin and to enhance lipogenesis in adipocytes of rat. Fractions 1 and 3 have been estimated to have molecular weights of 3700-4000 and 1000-1500 dalton, respectively. This initial report will focus on fraction 1. Interestingly, liver membranes from diabetic animals were found not to release mediators in the presence of insulin. However, following in vivo treatment of diabetic animals with insulin, the liver membranes appeared to restore its ability in generating chemical mediators in response to insulin.