Neuro-inflammation is thought to be an important factor in age-dependent loss of neuron associated with Alzheimer's disease. We seek STTR funding to develop a unique transgenic rat that serves as a model for chronic neuro-inflammation and age-dependent loss of neurons. Presently, no other animal model offers specific patterns of neuro-inflammation, presence of inflammatory cell-derived neurotoxins, and measurable age-dependent losses of neocortical neurons that closely match the pathology found in human brain during early AIzheimer's disease (AD). We believe that the novel rat model described here will have significant commercial potential among academic institutions and government agencies investigating mechanisms of AD pathology and among pharmaceutical and biotechnological companies testing drugs for treatment of AD.