In the realms of RNA, transposable elements created by self-inserting intro
ns recombine novel combinations of exon sequences in the background of repl
icating molecules. Although intermolecular MA recombination is a wide-sprea
d phenomenon reported for a variety of RNA-containing viruses, direct evide
nce to support the theory that modern splicing systems, together with the e
xon-intron structure, have evolved from the ability of RNA to recombine, is
lacking. Here, we used an in vitro deletion-complementation assay to demon
strate trans-activation of forward and reverse self-splicing of a fragmente
d derivative of the group II intron bI1 from yeast mitochondria. We provide
direct evidence for the functional interchangeability of analogous but non
-identical domain 1 RNA molecules of group II introns that result in trans-
activation of intron transposition and RNA-based exon shuffling. The data e
xtend theories on intron evolution and raise the intriguing possibility tha
t naturally fragmented group III and spliceosomal introns themselves can cr
eate transposons, permitting rapid evolution of protein-coding sequences by
splicing reactions. (C) 2000 Academic Press.