DiSSU1, a mobile intron in the nuclear rRNA gene of Didymium iridis, w
as previously reported to contain two independent catalytic RNA elemen
ts. We have found that both catalytic elements, renamed GIR1 and GIR2,
are group I ribozymes, but with differing functionality. GIR2 carries
out the several reactions associated with self-splicing. GIR1 carries
out a hydrolysis reaction at an internal processing site (IPS-1). The
se conclusions are based on the catalytic properties of RNAs transcrib
ed in vitro. Mutation of the P7 pairing segment of GIR2 abrogated self
-splicing, while mutation of P7 in GIR1 abrogated hydrolysis at the IP
S-1. Much of the P2 stem and all of the associated loop could be delet
ed without effect on self-splicing, These results are accounted for by
a secondary structure model, in which a long P2 pairing segment bring
s the 5' splice site to the GIR2 catalytic core. GIR1 is the smallest
natural group I ribozyme yet reported and is the first example of a gr
oup I ribozyme whose presumptive biological function is hydrolysis. We
hypothesize that GIR1-mediated cleavage of the excised intron RNA fun
ctions in the generation and expression of the mRNA for the intron-enc
oded endonuclease I-DirI.