As visualized by in situ hybridization with fluorescence detection, newly amplified CAD genes in 10(5) cell colonies are contained in multiple copies of very large regions of DNA, each tens of megabases long. The extra DNA is usually linked to the short arm of chromosome B9, which retains CAD at its normal site. The widely spaced genes are often interspersed with new G-negative regions. Individual cells within a clone have highly variable numbers of CAD genes (range 2-15). When resistant clones are examined later, at the 10(15) cell stage, the amplified genes are usually found in much more condensed structures. We propose that, in the initial event of CAD gene amplification, much of the short arm is transferred from one B9 chromosome to another. In subsequent cell cycles this initial duplication expands rapidly through unequal but homologous sister chromatid exchanges. Relatively rare secondary events lead to more condensed structures.