We have recently experienced two cases of PEN. Clinically, these lesions were asymptomatic, flesh-colored or reddish brown papules or nodules. Light microscopy revealed several lobulated, partially encapsulated dermal tumors composed of interlacing Schwann cell fascicles. In some areas, palisading of nuclei was observed, but this was not characteristic. On Bodian staining, moderate to large numbers of tiny axons were observed. Electron microscopy demonstrated many myelinated axons incompletely invested by Schwan cell cytoplasm.