We examined the availability of the lacZ gene (${eta}$-galactosidase gene) as a reporter of foreign gene transfer in the cysts of Artemia franciscana (A. franciscana) to conduct a risk assessment of living genetically modified organisms (LMOs) in the marine ecosystem. The LacZ gene was transferred to decapsulated cysts by particle bombardment, and its insertion and expression were assessed by means of polymerase chain reaction (PCR) and X-gal staining. X-gal staining indicated lacZ expression in all A. franciscana examined (including the control group), which exhibited not only negative but also positive PCR amplification. Endogenous ${eta}$-galactosidase is highly active in the whole body of A. franciscana during all stages of the life cycle. Thus, the lacZ gene is unsuitable as a reporter for foreign gene transfer in A. franciscana cysts, because it is difficult to discriminate between exogenous and endogenous ${eta}$-galactosidase activity.