Activation of transforming growth factor β receptors causes the phosphorylation and nuclear translocation of Smad proteins, which then participate in the regulation of expression of target genes. We describe a novel Smad-interacting protein, SIP1, which was identified using the yeast two-hybrid system. Although SIP1 interacts with the MH2 domain of receptor-regulated Smads in yeast andin vitro, its interaction with full-length Smads in mammalian cells requires receptor-mediated Smad activation. SIP1 is a new member of the δEF1/Zfh-1 family of two-handed zinc finger/homeodomain proteins. Like δEF1, SIP1 binds to 5′-CACCT sequences in different promoters, including the Xenopus brachyury promoter. Overexpression of either full-length SIP1 or its C-terminal zinc finger cluster, which bind to the Xbra2promoter in vitro, prevented expression of the endogenousXbra gene in early Xenopus embryos. Therefore, SIP1, like δEF1, is likely to be a transcriptional repressor, which may be involved in the regulation of at least one immediate response gene for activin-dependent signal transduction pathways. The identification of this Smad-interacting protein opens new routes to investigate the mechanisms by which transforming growth factor β members exert their effects on expression of target genes in responsive cells and in the vertebrate embryo. Activation of transforming growth factor β receptors causes the phosphorylation and nuclear translocation of Smad proteins, which then participate in the regulation of expression of target genes. We describe a novel Smad-interacting protein, SIP1, which was identified using the yeast two-hybrid system. Although SIP1 interacts with the MH2 domain of receptor-regulated Smads in yeast andin vitro, its interaction with full-length Smads in mammalian cells requires receptor-mediated Smad activation. SIP1 is a new member of the δEF1/Zfh-1 family of two-handed zinc finger/homeodomain proteins. Like δEF1, SIP1 binds to 5′-CACCT sequences in different promoters, including the Xenopus brachyury promoter. Overexpression of either full-length SIP1 or its C-terminal zinc finger cluster, which bind to the Xbra2promoter in vitro, prevented expression of the endogenousXbra gene in early Xenopus embryos. Therefore, SIP1, like δEF1, is likely to be a transcriptional repressor, which may be involved in the regulation of at least one immediate response gene for activin-dependent signal transduction pathways. The identification of this Smad-interacting protein opens new routes to investigate the mechanisms by which transforming growth factor β members exert their effects on expression of target genes in responsive cells and in the vertebrate embryo. Ligands of the TGF-β 1The abbreviations TGF-βtransforming growth factor βbHLHbasic helix-loop-helixBMPbone morphogenetic proteinbrabrachyuryCZFC-terminal zinc finger clusterDBDDNA-binding domainGSTglutathione S-transferaseLacZβ-galactosidase product of the E. coli LacZ geneNZFN-terminal zinc finger clusterSBDSmad-binding domainSIPSmad-interacting proteinPCRpolymerase chain reactionXXenopusdpcdays post coitum family exert their biological effects by activating serine/threonine kinase receptor complexes, which in turn activate intracellular mediators, the Smad proteins. Smads were initially identified by means of genetic studies in Drosophila and Caenorhabditis elegans as Mad and Sma gene products, respectively. Nine different vertebrate Smads have been isolated (reviewed in Refs. 1Heldin C.H. Miyazono K. ten Dijke P. Nature. 1997; 390: 465-471Crossref PubMed Scopus (3390) Google Scholar, 2Kretzschmar M. Massagué J. Curr. Opin. Genet. Dev. 1998; 8: 103-111Crossref PubMed Scopus (434) Google Scholar, 3Whitman M. Genes Dev. 1998; 12: 2445-2462Crossref PubMed Scopus (447) Google Scholar; Ref. 4LeSueur J.A. Graff J.M. Development. 1999; 126: 137-146Crossref PubMed Google Scholar). These proteins are characterized by a three-domain structure containing conserved N-terminal and C-terminal domains, called the MH1 and MH2 domains, which flank a more variable, proline-rich linker region. The Smads can be classified into three subgroups based on their distinct functions. The receptor-regulated Smads (Smad1, 2, 3, 5, and 8) contain a conserved SSXS motif at their extreme C-terminal end. Upon ligand stimulation, two serines in this motif are directly phosphorylated by specific type I receptors. Once activated, these Smads associate with Smad4, a common mediator Smad, and the heteromeric complexes translocate to the nucleus where they mediate responses to specific ligands. Smads 1, 5, and 8 act in bone morphogenetic protein (BMP) pathways, whereas Smads 2 and 3 act in activin and TGF-β pathways. A third group of Smads, the inhibitory Smads (Smad6 and Smad7), prevent the activation of receptor-regulated Smads or their heteromerization with Smad4. Functional homologues of inhibitory Smads and the common mediator Smad in Drosophilahave been identified as Dad and Medea, respectively (1Heldin C.H. Miyazono K. ten Dijke P. Nature. 1997; 390: 465-471Crossref PubMed Scopus (3390) Google Scholar, 2Kretzschmar M. Massagué J. Curr. Opin. Genet. Dev. 1998; 8: 103-111Crossref PubMed Scopus (434) Google Scholar, 3Whitman M. Genes Dev. 1998; 12: 2445-2462Crossref PubMed Scopus (447) Google Scholar). transforming growth factor β basic helix-loop-helix bone morphogenetic protein brachyury C-terminal zinc finger cluster DNA-binding domain glutathione S-transferase β-galactosidase product of the E. coli LacZ gene N-terminal zinc finger cluster Smad-binding domain Smad-interacting protein polymerase chain reaction Xenopus days post coitum In the absence of signaling, Smads are kept in a latent conformation through an intramolecular interaction between the MH1 and MH2 domains. Activation of receptor-regulated Smads has been proposed to disrupt this autoinhibition, allowing the MH1 and MH2 domains to exert distinct functions in the nucleus (1Heldin C.H. Miyazono K. ten Dijke P. Nature. 1997; 390: 465-471Crossref PubMed Scopus (3390) Google Scholar, 2Kretzschmar M. Massagué J. Curr. Opin. Genet. Dev. 1998; 8: 103-111Crossref PubMed Scopus (434) Google Scholar, 3Whitman M. Genes Dev. 1998; 12: 2445-2462Crossref PubMed Scopus (447) Google Scholar). Smad4 and the MH1 domain of activated Smad3 can directly bind DNA. Smad-binding elements in the promoters of different immediate response genes such as JunB and PAI-I contain 5′-CAGA boxes, and multimerization of such elements creates a TGF-β -inducible enhancer (5Yingling J. Datto M. Wong C. Frederick J. Liberati N. Wang X. Mol. Cell. Biol. 1997; 17: 7019-7028Crossref PubMed Google Scholar, 6Zawel L. Dai J.L. Buckhaults P. Zhou S. Kinzler K.W. Vogelstein B. Kern S.E Mol. Cell. 1998; 1: 611-617Abstract Full Text Full Text PDF PubMed Scopus (902) Google Scholar, 7Dennler S. Itoh S. Vivien D. ten Dijke P. Huet S. Gauthier J. EMBO J. 1998; 17: 3091-3100Crossref PubMed Scopus (1611) Google Scholar, 8Jonk L.J. Itoh S. Heldin C.H. ten Dijke P. Kruijer W. J. Biol. Chem. 1998; 273: 21145-21152Abstract Full Text Full Text PDF PubMed Scopus (516) Google Scholar). The crystal structure of the Smad3 MH1domain bound to a Smad-binding element revealed that 5′-GTCT represents the minimal DNA-binding sequence (9Shi Y. Wang Y.F. Jayaraman L. Massagué J. Pavletich N.P. Cell. 1998; 94: 585-594Abstract Full Text Full Text PDF PubMed Scopus (620) Google Scholar). However, promoter studies on other direct target genes, such as vestigial andtinman in Drosophila and goosecoid in the mouse, have implicated GC-rich sequences as direct DNA targets forMad and/or Medea and for Smad3 and/or Smad4 (10Kim J. Johnson K. Chen H.J. Carroll S. Laughon A. Nature. 1997; 388: 304-308Crossref PubMed Scopus (454) Google Scholar, 11Xu X. Yin Z. Hudson J.B. Ferguson E.L. Frasch M. Genes Dev. 1998; 12: 2354-2370Crossref PubMed Scopus (223) Google Scholar, 12Labbé E. Silvestri C. Hoodless P.A. Wrana J.L. Attisano L. Mol. Cell. 1998; 2: 109-120Abstract Full Text Full Text PDF PubMed Scopus (467) Google Scholar). Together, these data suggest that Smads display a low DNA-binding affinity and specificity but are able to achieve highly specific regulation of target promoters through physical or functional interaction with nearby bound transcription factors (12Labbé E. Silvestri C. Hoodless P.A. Wrana J.L. Attisano L. Mol. Cell. 1998; 2: 109-120Abstract Full Text Full Text PDF PubMed Scopus (467) Google Scholar, 13Chen X. Rubock M.J. Whitman M. Nature. 1996; 383: 691-696Crossref PubMed Scopus (635) Google Scholar, 14Chen X. Weisberg E. Fridmacher V. Watanabe M. Naco G. Whitman M. Nature. 1997; 389: 85-89Crossref PubMed Scopus (497) Google Scholar, 15Liu F. Pouponnot C. Massagué M. Genes Dev. 1997; 11: 3157-3167Crossref PubMed Scopus (402) Google Scholar, 16Zhou S. Zawel L. Lengauer C. Kinzler K. Vogelstein B. Mol. Cell. 1998; 2: 121-127Abstract Full Text Full Text PDF PubMed Scopus (213) Google Scholar, 17Zhang Y. Feng X.-H. Derynck R. Nature. 1998; 394: 909-913Crossref PubMed Scopus (699) Google Scholar, 18Hua X. Liu X. Ansari D.O. Lodish H.F. Genes Dev. 1998; 12: 3084-3095Crossref PubMed Scopus (261) Google Scholar, 19Moustakas A. Kardasis D. Proc. Natl. Acad. Sci. U. S. A. 1998; 95: 6733-6738Crossref PubMed Scopus (324) Google Scholar, 20Kurokawa M. Mitani K. Irie K. Matsuyama T. Takahashi T. Chiba S. Yazaki Y. Matsumoto K. Hirai H. Nature. 1998; 394: 92-96Crossref PubMed Scopus (307) Google Scholar). This has been exemplified through detailed studies of activin/TGF-β response elements (ARE) in the promoters of Xenopus Mix.2 and mousegoosecoid which bind the forkhead transcription factors FAST1 and FAST2, respectively (12Labbé E. Silvestri C. Hoodless P.A. Wrana J.L. Attisano L. Mol. Cell. 1998; 2: 109-120Abstract Full Text Full Text PDF PubMed Scopus (467) Google Scholar, 13Chen X. Rubock M.J. Whitman M. Nature. 1996; 383: 691-696Crossref PubMed Scopus (635) Google Scholar, 14Chen X. Weisberg E. Fridmacher V. Watanabe M. Naco G. Whitman M. Nature. 1997; 389: 85-89Crossref PubMed Scopus (497) Google Scholar, 15Liu F. Pouponnot C. Massagué M. Genes Dev. 1997; 11: 3157-3167Crossref PubMed Scopus (402) Google Scholar, 16Zhou S. Zawel L. Lengauer C. Kinzler K. Vogelstein B. Mol. Cell. 1998; 2: 121-127Abstract Full Text Full Text PDF PubMed Scopus (213) Google Scholar). It has been proposed that upon ligand stimulation, FAST1 or FAST2 recruit heteromeric Smad2/4 complexes to the Mix.2 or goosecoid promoters through their interaction with the MH2 domain of activated Smad2. This promotes binding of Smad4 to an adjacent site, resulting in enhanced transcriptional activation (12Labbé E. Silvestri C. Hoodless P.A. Wrana J.L. Attisano L. Mol. Cell. 1998; 2: 109-120Abstract Full Text Full Text PDF PubMed Scopus (467) Google Scholar, 16Zhou S. Zawel L. Lengauer C. Kinzler K. Vogelstein B. Mol. Cell. 1998; 2: 121-127Abstract Full Text Full Text PDF PubMed Scopus (213) Google Scholar). The MH2 domain of Smads appear to mediate the association with transcription factors and although the majority of documented interactions involve the induction of gene expression, some block transcriptional responses to ligand stimulation. For example, the transcription factor and oncoprotein Evi-1 specifically interacts with activated Smad3, thereby preventing Smad3 from binding DNA and blocking TGF-β-induced growth arrest in certain cell types (20Kurokawa M. Mitani K. Irie K. Matsuyama T. Takahashi T. Chiba S. Yazaki Y. Matsumoto K. Hirai H. Nature. 1998; 394: 92-96Crossref PubMed Scopus (307) Google Scholar). Recruitment of Smad3/Smad4 heteromeric complexes to the mouse goosecoidpromoter blocks, rather than induces, transcription of the gene (12Labbé E. Silvestri C. Hoodless P.A. Wrana J.L. Attisano L. Mol. Cell. 1998; 2: 109-120Abstract Full Text Full Text PDF PubMed Scopus (467) Google Scholar). Overall, these data indicate that, once activated and targeted to the nucleus, Smads are able to undergo multiple interactions with DNA and/or with different transcription factors to cause both activation and repression of gene expression. Previously, we have shown that overexpression of the XenopusSmad1 MH2 domain induces ventral cell types in Xenopusembryos. Because this domain does not have DNA-binding capacity, we anticipated that it would interact with transcription factors in the nucleus to elicit its biological effect (21Meersseman G. Verschueren K. Nelles L. Blumenstock C. Kraft H. Wuytens G. Remacle J. Kozak C.A. Tylzanowski P. Niehrs C. Huylebroeck D. Mech. Dev. 1997; 61: 127-140Crossref PubMed Scopus (63) Google Scholar). Therefore, a search for Smad-interacting proteins (SIPs) was initiated using two-hybrid screening in yeast. As bait, the XSmad1 MH2 domain was fused to the DNA-binding domain of the yeast transcription factor GAL4 (GAL4DBD). As source of preys, we used a 12.5-dpc mouse embryo cDNA library fused to the GAL4 transactivation domain (GAL4TAD). This screen yielded several SIPs, one of which, SIP1, is characterized here. Mouse Smad1 and Smad2 cDNAs were identified by low stringency screening of an oligo-dT-primed λExlox library made from 12-dpc mouse embryo (Novagen), using Smad5 (MLP1.2 clone; Ref. 21Meersseman G. Verschueren K. Nelles L. Blumenstock C. Kraft H. Wuytens G. Remacle J. Kozak C.A. Tylzanowski P. Niehrs C. Huylebroeck D. Mech. Dev. 1997; 61: 127-140Crossref PubMed Scopus (63) Google Scholar) as a probe. This library was also used to screen for SIP1 cDNAs other than th1 cDNA, yielding λExTW6. The 3.6-kilobase TW6 cDNA overlapped with th1 and contained additional 3′-coding sequences including an in-frame stop codon. The complete SIP1 open reading frame was reconstituted by fusing TW6 cDNA with a SIP1 sequence including the ATG translation initiation codon, obtained in an independent screen for mouse homologues of Zfh-1. For expression in mammalian cells and Xenopus, the SIP1 cDNA was subcloned into pCS2 and pCS3 (22Rupp R.A. Snider L. Weintraub H. Genes Dev. 1994; 8: 1311-1323Crossref PubMed Scopus (568) Google Scholar). In the latter, the SIP1 open reading frame was fused to a Myc6 tag at the N terminus. For expression of SIP1CZF, we subcloned a cDNA fragment encoding amino acids 977–1214 into pCS3. XSmad1 full-size and MH2 domain bait plasmids were constructed using the previously described EcoRI-XhoI inserts (21Meersseman G. Verschueren K. Nelles L. Blumenstock C. Kraft H. Wuytens G. Remacle J. Kozak C.A. Tylzanowski P. Niehrs C. Huylebroeck D. Mech. Dev. 1997; 61: 127-140Crossref PubMed Scopus (63) Google Scholar) and cloned between the EcoRI and SalI sites of the bait vector pGBT-9 (Matchmaker I, CLONTECH), such that in-frame fusions with GAL4DBD were obtained. Similar bait plasmids with mouse Smad1, Smad2, and Smad5 were generated by PCR starting from the respective cDNA fragments encoding the MH2 domain. The G418S XSmad1 MH2 domain was generated by oligonucleotide-directed mutagenesis (Bio-Rad). For construction of the prey cDNA library, polyadenylated RNA from 12.5-dpc mouse embryos was isolated using the Oligotex mRNA Kit (Qiagen). Randomly primed cDNA was synthesized (Superscript Choice; Life Technologies, Inc.) and ligated to an excess of Sfi double-stranded adaptors containing StuI and BamHI sites. To facilitate cloning of the cDNAs, the prey plasmid pACT2 (Matchmaker II,CLONTECH) was modified into pACT2/Sfi-Sfi (data not shown). Restriction of this plasmid with Sfi generates sticky ends that are not complementary, thus preventing self-ligation of the vector. A library of 3.6 × 106 independent recombinant clones with an average insert size of 1,100 base pairs was obtained. The yeast two-hybrid screening was carried out with the Matchmaker II kit. The yeast transformations were, however, performed according to Gietz (23Gietz D. St Jean A. Woods R.A. Schiestl R.H. Nucleic Acids Res. 1992; 20: 1425Crossref PubMed Scopus (2935) Google Scholar). Yeast strain CG-1945 was used, and the screening was done on selective medium containing 5 mm3-amino-1,2,4-triazole. To map the Smad-binding domain in SIP1, progressive deletions were generated by PCR using Pfu polymerase (Pfu; Stratagene), and resulting amplified DNAs were cloned into pACT2, by means of SmaI and XhoI restriction sites built in the primers used for amplification. SIP1ΔSBD51 was generated by amplifying N- and C-terminal segment-encoding parts of the cDNA which were fused by means of a NcoI restriction site built into the PCR primers at the position of the deletion. The correct sequence of all these generated constructs was verified by DNA sequencing. HEK293T cells were maintained in Dulbecco's modified Eagle's medium containing 4.5 mg of glucose/ml and 10% fetal bovine serum. COS1 cells were grown in Dulbecco's modified Eagle's medium with 10% fetal bovine serum. Cells were transfected using Fugene (Roche Molecular Biochemicals) according to the protocol of the manufacturer and collected 30–48 h after transfection. For production of GST-Smad fusion proteins in Escherichia coli, the same Smad fragments as used in the two-hybrid assay were re-cloned in pGEX-5X-1 (Amersham Pharmacia Biotech). GST-fusion proteins were expressed in E. coli (strain BL21) and purified on glutathione-Sepharose beads according to protocols provided by the supplier (Amersham Pharmacia Biotech). The beads were first washed four times with phosphate-buffered saline supplemented with protease inhibitors and then were mixed with 50 μl of COS1 cell lysate in 1 ml of GST buffer (50 mm Tris-HCl, pH 7.5, 120 mmNaCl, 2 mm EDTA, 0.1% (v/v) Nonidet P-40, and protease inhibitors). The lysate was prepared from COS1 cells transiently transfected with pCS3-SIP1 using solubilization buffer (24Verschueren K. Dewulf N. Goumans M.J. Lonnoy O. Feijen A. Grimsby S. Vande Spiegle K. ten Dijke P. Morén A. Vanscheeuwijck P. Heldin C.H. Miyazono K. Mummery C. van den Eijnden-van Raaij A.J.M. Huylebroeck D. Mech. Dev. 1995; 52: 109-123Crossref PubMed Scopus (104) Google Scholar). The beads were mixed at 4 °C for 16 h. Unbound proteins were removed by washing four times with GST buffer and once with phosphate-buffered saline at 4 °C. Bound proteins were harvested by boiling in sample buffer, and they were resolved by SDS-polyacrylamide gel electrophoresis. Myc-tagged SIP1 was visualized after Western blotting using anti-Myc monoclonal antibody (9E10), horseradish peroxidase-conjugated anti-mouse secondary antibody (Jackson), and the enhanced chemiluminescence kit (New England Nuclear). For mammalian pull-down experiments, DNA inserts in pGEX-5X-1 encodingXSmad1 GST-fusion proteins were amplified by PCR usingPfu, and re-cloned into pCS2. Cell pellets of transfected COS1 cells were frozen in liquid nitrogen, thawed on ice, and solubilized in lysis buffer containing 1% Nonidet P-40, 150 mm NaCl, 20 mm Tris, pH 7.5, 2 mmEDTA, supplemented with protease inhibitors (Protease Inhibitor Mixture Tablets, Roche Molecular Biochemicals). Cell lysates were cleared by centrifugation, and GST-fusion proteins were purified from cell extracts by incubation with glutathione-Sepharose beads for 2 h at 4 °C, followed by four washes in cold lysis buffer. Purified proteins were visualized by Western blotting as described above. For detection of the GST-fusion proteins, a polyclonal anti-GST antibody (Amersham Pharmacia Biotech) and a horseradish peroxidase-conjugated anti-goat secondary antibody (Jackson) were used. Extracts from transfected HEK293T cells were prepared as described above for COS1 cells in the mammalian pull-down experiments, except that the lysis buffer was also supplemented with a mixture of phosphatase inhibitors (50 mm NaF, 1 mm sodium pyrophosphate, and 0.1 μm okadaic acid). Immunoprecipitations were performed by incubation with the M2 Flag monoclonal antibody for 2 h at 4 °C, followed by incubation with protein-G beads for 1 h at 4 °C. Beads were collected by centrifugation and washed four times with lysis buffer at 4 °C, and bound proteins were visualized as described above in the pull-down experiments. The sequence of the upper strand of the double-stranded oligonucleotide probes used in this work are shown in Figs. 6 and 7. The wild type and mutant κE2 sequences, the X. brachyury-binding site and MyoD-binding site were taken from Sekido et al. (25Sekido R. Murai K. Funahashi J. Kamachi Y. Fujisawa-Sehara A. Nabeshima Y. Kondoh H. Mol. Cell. Biol. 1994; 14: 5692Crossref PubMed Google Scholar). The AREB6-binding site (26Ikeda K. Kawakami K. Eur. J. Biochem. 1995; 233: 73-82Crossref PubMed Scopus (78) Google Scholar), the Nil-2a-binding site (27Williams T.M. Moolten D. Burlein J. Romano J. Bhaerman R. Godillot A. Mellon M. Rauscher F.J. Kant J.A. Science. 1991; 254: 1791-1794Crossref PubMed Scopus (171) Google Scholar), and the GATA2-binding site (28Lee M.E. Temizer D.H. Clifford J.A. Quertermous T. J. Biol. Chem. 1991; 266: 16188-16192Abstract Full Text PDF PubMed Google Scholar) were identical to those described previously. Double-stranded oligonucleotides were end-labeled with T4 polynucleotide kinase and [γ-32P]ATP and purified by polyacrylamide gel electrophoresis. Gel retardation assays were carried out with either a bacterially expressed and purified GST-fusion protein (GST-SIP1CZF) or with cell extracts from COS1 cells transiently transfected with expression constructs encoding Myc-tagged SIP1 proteins. Extracts were made from those cells as described in the GST pull-down experiments using solubilization buffer. Electrophoretic mobility shift assay was carried out according to Sekido et al. (25Sekido R. Murai K. Funahashi J. Kamachi Y. Fujisawa-Sehara A. Nabeshima Y. Kondoh H. Mol. Cell. Biol. 1994; 14: 5692Crossref PubMed Google Scholar). The GST-PLAG1 fusion protein, used as a negative control, was a gift from M. Voz (Flanders Interuniversity Institute for Biotechnology, Dept. VIB-04, Leuven, Belgium).Figure 7SIP1 binds to the Xbra2promoter. Fifty pg of 32P-labeledXbra SIP1 probes (WT or D) were incubated with extracts from COS1 cells transfected with expression constructs for Myc-tagged SIP1CZF (lanes 1–2) or full-length SIP1 (SIP1FS, lanes 3–4).Lane 5 shows binding of endogenous proteins in cell extracts from mock-transfected cells. Specific SIP1 complexes are indicated (*) as well as endogenous complexes (●). Xbra-WT probe contains the sequence 5′-ATCCAGGCCACCTAAAATATAGAATGATAAAGTGACCAGGTGTCAGTTCT, and Xbra-D contains 5′-ATCCAGGCCACCTAAAATATAGAATGATAAAGTGACCAGATGTCAGTTCT. SIP1-binding sites are in bold, and the substituted nucleotide is underlined.View Large Image Figure ViewerDownload (PPT) RNA encoding SIP1CZF, SIP1TH1, and full-length SIP1 was prepared by linearizing the appropriate pCS2 plasmids with Asp718 and carrying out transcription reactions according to (29Smith J.C. Hartley D. Cellular Interactions in Development-a Practical Approach. Oxford University Press, New York1993: 181-204Google Scholar). Xenopus embryos were obtained by in vitro fertilization (30Smith J.C. Slack J.M.W. J. Embryol. Exp. Morphol. 1983; 78: 299-317PubMed Google Scholar). They were maintained in 10% Normal Amphibian Medium (31Slack J.M.W. J. Embryol. Exp. Morphol. 1984; 80: 289-319PubMed Google Scholar) and staged according to Nieuwkoop and Faber (32Nieuwkoop P.D. Faber J. Normal Table of Xenopus laevis. Daudin, North Holland, Amsterdam1967Google Scholar). Embryos at the 2- to 4-cell stage were injected with 1 ng of RNA dissolved in 14 nl of water as described (33Harland R.M. Methods Cell Biol. 1991; 36: 675-685Crossref PubMed Scopus (3) Google Scholar). They were cultured to early gastrula stage 10.5 and processed for whole mount in situ hybridization according to the method of Harland (33Harland R.M. Methods Cell Biol. 1991; 36: 675-685Crossref PubMed Scopus (3) Google Scholar), using a probe specific for Xbra (34Smith J.C. Price M. Green J.B. Weigel D. Herrmann B.G. Cell. 1991; 67: 79-87Abstract Full Text PDF PubMed Scopus (863) Google Scholar). To carry out the two-hybrid screening, the coding sequence of the MH2 domain ofXSmad1 was fused to the GAL4DBD in the plasmid pGBT-9. This GAL4DBD-Smad1 bait protein, when tested on its own, did not give detectable levels of GAL4-dependent synthesis of HIS3 and LacZ in the yeast strain used. As a source of prey cDNAs, a random primed library was constructed in a modified pACT2 vector using polyadenylated RNA isolated from 12.5-dpc mouse embryos. Screening of about 4 million yeasts using this bait and the prey plasmids yielded approximately 500 colonies expressing both theHIS3 marker and LacZ reporter genes. Rescreening of these colonies identified 81 in which expression of the two genes required the presence of prey as well as bait cDNAs. One of the prey cDNAs, th72, encoded a protein in which the GAL4 transactivation domain was fused in-frame to Smad4, which started from amino acid 252 in the proline-rich domain (data not shown). Smad4 is known to interact with other receptor-activated Smad proteins (1Heldin C.H. Miyazono K. ten Dijke P. Nature. 1997; 390: 465-471Crossref PubMed Scopus (3390) Google Scholar, 2Kretzschmar M. Massagué J. Curr. Opin. Genet. Dev. 1998; 8: 103-111Crossref PubMed Scopus (434) Google Scholar, 3Whitman M. Genes Dev. 1998; 12: 2445-2462Crossref PubMed Scopus (447) Google Scholar), and the isolation of this Smad4 cDNA confirmed the feasibility of our two-hybrid approach toward identifying Smad-interacting proteins. The cDNA insert of another positive prey plasmid, th1, encoded a polypeptide of 626 amino acids, named SIP1TH1. Whereas th72 (Smad4) was isolated only once from the initial collection of 81 positive colonies, two additional SIP1 clones, identical to SIP1TH1, were obtained. Sequence analysis revealed that SIP1TH1 has similarities to the vertebrate δ-crystallin enhancer binding protein (δEF1) and Drosophila Zfh-1 (25Sekido R. Murai K. Funahashi J. Kamachi Y. Fujisawa-Sehara A. Nabeshima Y. Kondoh H. Mol. Cell. Biol. 1994; 14: 5692Crossref PubMed Google Scholar,36Duboule D. Guidebook to the Homeobox Genes. Oxford University Press, New York1994: 27-71Google Scholar). These proteins, like SIP1TH1, contain a homeodomain sequence. The Zfh-1 homeodomain is a canonical domain containing highly conserved residues in helix 3/4 critical for DNA binding, such as a conserved asparagine and arginine at positions 10 and 12 within the helix (36Duboule D. Guidebook to the Homeobox Genes. Oxford University Press, New York1994: 27-71Google Scholar). These critical amino acids are, however, not conserved in the corresponding regions of δEF1 or SIP1, suggesting that their homeodomain cannot bind directly to DNA. We therefore prefer to call this domain a homeodomain-like sequence. Because Zfh-1 is involved in patterning of mesoderm-derived tissues (35Fortini M.E. Lai Z. Rubin G.M. Mech. Dev. 1991; 34: 113-122Crossref PubMed Scopus (144) Google Scholar), including muscle and a subset of cells in the heart, 2M.-T. Su, M. Fujioka, and R. Bodmer, unpublished results. and δEF1 is required for normal development of T cells and certain skeletal elements in the mouse (38Higashi Y. Moribe H. Takagi T. Sekido R. Kawakami K. Kikutani H. Kondoh H. J. Exp. Med. 1997; 185: 1467-1479Crossref PubMed Scopus (122) Google Scholar, 39Takagi T. Moribe H. Kondoh H. Higashi Y. Development. 1998; 125: 21-31Crossref PubMed Google Scholar), it is possible that SIP1, which is expressed during mouse embryogenesis (data not shown), also plays a role in embryonic development. Therefore, SIP1TH1 was subjected to further analysis. Interaction between SIP1TH1 and different Smad proteins were first examined using the yeast two-hybrid system. Interaction of SIP1TH1 with the MH2 domain ofXSmad1 was maintained upon removal of the homeodomain-like segment of SIP1TH1 (data not shown), and similar approaches enabled us to position the Smad-binding domain (SBD) of SIP1TH1 to a region within the first 192 amino acids. Strikingly, we did not observe an interaction between SIP1TH1 and full-length XSmad1 in yeast (Fig.1). This was not because of inefficient expression of full-length Smad1 in yeast because other Smad-interacting polypeptides, that are not related to SIP1, interacted efficiently with this bait (data not shown). Additional experiments showed that SIP1TH1 did not interact with the MH1 domain ofXSmad1 nor with the MH2 domain from which the last 43 amino acids were deleted (Δ424–466) (Fig. 1). A truncated Mad similar to the Δ424–466 mutant has been shown to cause loss-of-function phenotypes in Drosophila, whereas a similar truncation of Smad4 (dpc4) in a loss-of-heterozygosity background is associated with pancreatic carcinomas (40Sekelsky J.J. Newfeld S.J. Raftery L.A. Chartoff E.H. Gelbart W.M. Genetics. 1995; 139: 1347-1358Crossref PubMed Google Scholar, 41Hahn S.A. Schutte M. Hoque A.T. Moskaluk C.A. da Costa L.T. Rozenblum E. Weinstein C.L. Fisher A. Yeo C.J. Hruban R.H. Kern S.E. Science. 1996; 271: 350-353Crossref PubMed Scopus (2189) Google Scholar). In contrast, SIP1TH1 did interact with a modified XSmad1 MH2 domain having a single amino acid substitution (G418S, Fig. 1). This mutation affects a conserved glycine residue and has been reported to render the Smad homologue of Drosophila inactive and to abolish BMP-dependent phosphorylation of Smad1 in mammalian cells (40Sekelsky J.J. Newfeld S.J. Raftery L.A. Chartoff E.H. Gelbart W.M. 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