Steroid receptors and coactivator proteins are thought to stimulate ge
ne expression by facilitating the assembly of basal transcription fact
ors into a stable preinitiation complex(1). That is not clear, however
, is how these transcription factors gain access to transcriptionally
repressed chromatin to modulate the transactivation of specific gene n
etworks in vitro. The available evidence indicates that acetylation of
chromatin in vivo is coupled to transcription and that specific histo
ne acetyltransferases (HATs) target histones bound to DNA and overcome
the inhibitory effect of chromatin on gene expression(2-4). The stero
id-receptor coactivator SRC-1 is a coactivator for many members of the
steroid-hormone receptor superfamily of Ligand-inducible transcriptio
n factors(5), Here we show that SRC-1 possesses intrinsic histone acet
yltransferase activity and that it also interacts with another HAT, p3
00/CBP-associate factor (PCAF). The HAT activity of SRC-1 maps to its
carboxy-terminal region and is primarily specific for histones H3 and
H4, Acetylation by SRC-1 and PCAF of histones bound at specific promot
ers may result from ligand binding to steroid receptors and could be a
mechanism by which the activation functions of steroid receptors and
associated coactivators enhance formation of a stable preinitiation co
mplex, thereby increasing transcription of specific genes from transcr
iptionally repressed chromatin templates.