Transcription of tissue-specific genes in mammary gland requires signa
ls from both prolactin and basement membrane. Here we address the mech
anism by which this specialized extracellular matrix regulates transcr
iption. Using mammary cell cultures derived from transgenic mice harbo
ring the ovine beta-lactoglobulin gene, we show that either a basement
membrane extract, or purified laminin-1, induced high levels of beta-
lactoglobulin synthesis. It is known that prolactin signals through St
at5 (signal transducer and activator of transcription). This transcrip
tion factor interacts with gamma-interferon activation site-related mo
tifs within the beta-lactoglobulin promoter, which we show are require
d for matrix dependence of beta-lactoglobulin expression. The DNA bind
ing activity of Stat5 was present only in extracts of mammary cells cu
ltured on basement membrane, indicating that the activation state of S
tat5 is regulated by the type of substratum the cell encounters. Thus,
basement membrane controls transcription of milk protein genes throug
h the Stat5-mediated prolactin signaling pathway, providing a molecula
r explanation for previous studies implicating extracellular matrix in
the control of mammary differentiation.