The recently cloned human Ets transcription factor ERM is closely rela
ted to the ER81 and PEA3 genes. Here, we report the functional analysi
s of the DNA-binding and transactivation properties of ERM. Specific D
NA-binding by ERM requires the ETS domain, conserved in all members of
the Ets family and is inhibited by an 84 residue long central region
and the carboxy-terminal tail. Two fragments of ERM are transferrable
activation domains: alpha, which sits in the 72 first residues and enc
ompasses the acidic domain conserved between ERM, ER81 and PEA3, and t
he carboxy-terminal tail which also bears a DNA-binding inhibition fun
ction. Deletion of alpha strongly reduces transactivation by ERM. More
over, alpha and the carboxyterminal tail exhibit functional synergism,
suggesting that they activate transcription through different mechani
sms. In support of this idea, we demonstrate that VP16 squelches trans
activation by alpha but not by the carboxyterminal tail. This result a
lso indicates that alpha and VP16 may share common limiting cofactors.
alpha and the carboxy-terminal tail do not seem to be conserved withi
n the whole Ets family, indicating that the specificity of ERM may rel
y on interactions with distinct cofactors.