Activation of transcription in eukaryotes depends upon the interplay b
etween transcriptional activators and general transcription factors. W
hile direct contacts between activators and general factors have been
demonstrated in vitro, an additional class of proteins, termed co-acti
vators, is also required for transcriptional activation. Here we descr
ibe a yeast protein, SUB1, that was isolated as a suppressor of the co
ld-sensitive TFIIB R78H mutant. The N-terminal third of SUB1 is highly
similar to the mammalian co-activator PC4. We show that increased exp
ression of SUB1 suppresses two alleles of TFIIB (E62G, R78H) specifica
lly and that the deletion of SUB1 is lethal in combination with these
same two alleles. We show that SUB1 binds to TFIIB in vitro and that i
t specifically inhibits the formation of TBP-TFIIB-promoter complexes.
Furthermore we show that increasing the copy number of SUB1 stimulate
s transcriptional activation in vivo. Based on our results and recent
observations of others, we propose that SUB1 plays a role in the relea
se of TFIIB from the transcription complex during transcription initia
tion.