Heme is a prosthetic group for numerous enzymes, cytochromes and globi
ns, and it binds tightly, sometimes covalently, to these proteins. Int
erestingly, heme also potentiates binding of the yeast transcriptional
activator HAP1 to DNA and inhibits mitochondrial import of the mammal
ian delta-aminolevulinate synthase (ALAS) and the catalytic activity o
f the reticulocyte kinase, HRI. All three of these proteins contain a
short sequence, the heme regulatory motif (HRM), that occurs six times
adjacent to the HAP1 DNA binding domain, twice in the leader targetin
g sequence of ALAS and twice near the catalytic domain of the HRI kina
se, Here we show that a 10 amino acid peptide containing the HRM conse
nsus binds to heme in the micromolar range, and shifts the heme absorp
tion spectrum to a longer wavelength, a direction opposite to the chan
ge caused by cytochromes or globins. Further, we show that a single FI
RM regulates the acidic activation domains of HAP1 and GAL4 independen
tly of regulation of DNA binding of the transcription factors. These f
indings thus establish a novel heme binding sequence which is structur
ally distinct from sequences in globins or cytochromes and which has a
regulatory function.