Inclusion Criteria:

• Evidence of lamivudine resistance
• Subjects must have a history of previous lamivudine treatment at screening, and must have evidence of at least 1 LVD resistance substitution (valine, isoleucine, or serine) at reverse transcriptase codon 204 (M204V/I/S)
• Nucleoside- and nucleotide-naive, except for lamivudine
• Males or females ≥16 years of age (or minimum age of consent in a given country)
• Compensated liver function
• HBV DNA > 1.72 x 10*4* (approximately 10*5* copies/mL)
• Documentation of HBeAg-positive and HBeAb-negative status at screening
• Males and females >=16 years of age (or minimum age of consent in a given country)
• Women of childbearing potential (WOCBP) must be using an adequate method of contraception to avoid pregnancy throughout the study (and for up to 6 weeks after the last dose of investigational product) in such a manner that the risk of pregnancy is minimized
• WOCBP include any female who has experienced menarche and who has not undergone successful surgical sterilization (hysterectomy, bilateral tubal ligation or bilateral oophorectomy) or is not postmenopausal. Post menopausal is defined as:
• Amenorrhea >= 12 consecutive months without another cause
• For women with irregular menstrual periods and on hormone replacement therapy (HRT), a documented serum follicle stimulating hormone (FSH) level > 35 mIU/mL
• Women who are using oral contraceptives, other hormonal contraceptives (vaginal products, skin patches, or implanted or injectable products), or mechanical products such as an intrauterine device or barrier methods (diaphragm, condoms, spermicides) to prevent pregnancy, or are practicing abstinence or where partner is sterile (e.g., vasectomy), should be considered to be of child bearing potential
• WOCBP must have a negative serum or urine pregnancy test (minimum sensitivity 25 IU/L or equivalent units of HCG) within 72 hours prior to the start of investigational product

Exclusion Criteria:

• Evidence of decompensated cirrhosis
• Coinfection with HIV, HCV, or HDV
• Laboratory values out of protocol-specified range