Inclusion Criteria:

• Chronic HBV infection, defined as positive serum HBsAg for at least 6 months or HBsAg positive > 3 months and positive for IgG anti-HBc
• 18 through 69 years of age, inclusive
• HBeAg positive
• HBV DNA >= 10^8 copies/mL
• ALT <= ULN
• Willing and able to provide written informed consent
• Negative serum beta-HCG (for females of childbearing potential only)
• Calculated creatinine clearance >= 70 mL/min
• Hemoglobin >=10 g/dL
• Neutrophils >= 1,500 /mm3
• No prior oral HBV therapy (e.g., nucleotide and/or nucleoside therapy or other investigational agents for HBV infection).

Exclusion Criteria:

• Pregnant women, women who are breast feeding or who believe they may wish to become pregnant during the course of the study.
• Males and females of reproductive potential who are not willing to use an "effective" method of contraception during the study.
• Decompensated liver disease defined as direct (conjugated) bilirubin > 1.2 x ULN, PT >1.2 x ULN, platelets < 150,000/mm3, serum albumin < 3.5 g/dL, or prior history of clinical hepatic decompensation (e.g., ascites, jaundice, encephalopathy, variceal hemorrhage).
• Received interferon (pegylated or not) therapy within 6 months of the screening visit
• alpha-fetoprotein > 50 ng/mL
• Evidence of hepatocellular carcinoma (HCC)
• Co infection with HCV (by serology), HIV, or HDV.
• Significant renal, cardiovascular, pulmonary, or neurological disease.
• Received solid organ or bone marrow transplantation.
• Is currently receiving therapy with immunomodulators (e.g., corticosteroids, etc.), investigational agents, nephrotoxic agents, or agents susceptible of modifying renal excretion.
• Has proximal tubulopathy.
• Known hypersensitivity to the study drugs, the metabolites or formulation excipients.