The phosphatidylcholine exchange protein from beef liver catalyzes the exchange of phosphatidylcholine between single bilayer liposomes (Hellings et al. (1974), Eur. J. Biochem. 47, 601). A model has been proposed which describes the kinetics of this exchange. Steady-state equations have been derived from the model and have been used for the derivation of the theoretical rate equation. Computer analysis shows a good fit with the experimental results. It follows from the analysis that the apparent dissociation constant of the exchange protein-liposome complex decreases with an increasing phosphatidic acid content of the liposomes. This suggests that in this model system it is the phospholipid composition of the membranes involved that regulates the amount of exchange protein available to function as a carrier of phosphatidylcholine.