Urokinase plasminogen activator (uPA) has been associated with invasion and metastasis in breast cancer. The expression of uPA and 92 kDa type IV collagenase (gelatinase B/MMP‐9) is regulated by growth factors, receptor‐type tyrosine kinases and cytoplasmic oncoproteins. Here, we have identified transcriptional requirements for the induction of uPA and 92 kDa type IV collagenase by epidermal growth factor (EGF). EGF stimulates the motile and invasive activities specifically in the ErbB‐2‐overexpressing SK‐BR‐3 cells. Expression of extracellular matrix‐degrading proteases including type I collagenase/MMP‐1, 92 kDa type IV collagenase/MMP‐9, uPA and uPA receptor were induced. EGF also transiently stimulated expression of the transcription factors Ets‐1 and Ets‐2. Reporter transfection assays revealed the activation of uPA and MMP‐9 collagenase promoters by EGF and the requirement of each of the composite Ets and AP‐1 transcription factor binding sites for an EGF response. Most notably, transfections with the Ets‐1 and Ets‐2 expression vectors potentiated uPA and MMP‐9 promoter activation in response to EGF. Mutation of the threonine 75 residue of chicken Ets‐2 conserved in the Pointed group of the Ets family proteins abrogated the ability of Ets‐2 to collaborate with EGF. Ets‐1 and Ets‐2 were highly expressed in invasive breast tumor cell lines. Our results suggest that Ets‐1 and Ets‐2 provide the link connecting EGF stimuli with activation of uPA and 92 kDa type IV collagenase promoters and may contribute to invasion phenotypes. Int. J. Cancer 77:128–137, 1998.© 1998 Wiley‐Liss, Inc.