The NFKB1 gene encodes two functionally distinct proteins termed p50 a
nd p105. p50 corresponds to the N terminus of p105 and with p65 (RelA)
forms the prototypical NF-kappa B transcription factor complex. In co
ntrast, p105 functions as a Rel-specific inhibitor (I kappa B) and has
been proposed to be the precursor of p50. Our studies now demonstrate
that p50 is generated by a unique cotranslational processing event in
volving the 26S proteasome, whereas cotranslational folding of sequenc
es near the C terminus of p50 abrogates proteasome processing acid lea
ds to p105 production. These results indicate that p105 is not the pre
cursor of p50 and reveal a novel mechanism of gene regulation that ens
ures the balanced production and independent function of the p50 and p
105 proteins.