TFII-I is an unusual transcription factor possessing both basal and signal-
induced transcriptional functions. Here we report the characterization of a
TFII-I-related factor (MusTRD1 /BEN) that regulates transcriptional functi
ons of TFII-I by controlling its nuclear residency. MusTRD1/BEN has five or
six direct repeats, each containing helix-loop-helix motifs, and, thus, be
longs to the TFII-I family of transcription factors. TFII-I and MusTRD1/BEN
, when expressed individually, show predominant nuclear localization. Howev
er, when the two proteins are coexpressed ectopically, MusTRD1/BEN locates
almost exclusively to the nucleus, whereas TFII-I is largely excluded from
the nucleus, resulting in a loss of TFII-I-dependent transcriptional activa
tion of the E-fos promoter. Mutation of a consensus nuclear localization si
gnal in MusTRD1/BEN results in a reversal of nuclear residency of the two p
roteins and a concomitant gain of c-fos promoter activity. These data sugge
st a means of transcriptional repression by competition at the level of nuc
lear occupancy.