Human T-celi leukemia virus type I (HTLV-I) contains the pX sequence which codes for the trans-activator of the long terminal repeat (LTR) and is thus postulated to be associated with leukemogenesis in adult T-cell leukemia. Overlapping open reading frames (ORF) in the pX sequence were recently found to code for p27x-III and p2l'x"h by ORF Ill, in addition to p40 coded for by ORF IV. The mechanism of expression of these newly identified proteins and their possible association with trans-activation were studied. On transfection of an expression plasmid that contains a cDNA sequence of thepX mRNA, products from both ORFs m and IV were detected in the cells. The RNA was synthesized in vitro from the cDNA clone by SP6 RNA polymerase and translated in a rabbit reticulocyte lysate. As translation products, two proteins, p27x-Z and p2lx-, were detected in addition to p4y0. Elimination of the first and second ATG codons in ORF III resulted in loss of the ability to code for p27x1u5 and p21x111, respectively, which indicated that the translations from these two ATG codons were independent. A mutant that lacked both ATG codons was fully active in trans-activation of chloramphenicol acetyltransferase gene expression directed by the LTR. These results indicate that a 2.1-kilobase pX mRNA of HTLV-I independently encodes three proteins, p40', p27x-h1, and p21x-11, by different ORFs and that the last two proteins are not involved in trans-activation of the unintegrated LTR. Human T-cell leukemia virus type I (HTLV-I) (19, 32) is an etiological agent of adult T-cell leukemia (ATL) (8, 9, 33) and an exogenous human retrovirus (21, 32). The viral genome has an extra sequence, pX, between the env gene and the 3' long terminal repeat (LTR) (23). Expression of the pX sequence was suggested to be associated with leukemogenesis by HTLV-I from the following findings: (i) the absence of a specific site for provirus integration in leukemic cells, disproving a cis-acting function of the LTR (22); (ii) frequent in vitro immortalization of infected T cells, suggesting direct involvement of viral products (18, 20); and (iii) the transacting function of the pX product, which activates viral gene expression (6, 30). The pX sequence contains four possible open reading frames (ORFs), I to IV (23) (Fig. 1A), and a product encoded by ORF IV was previously identified as p4WY (10, 14, 17, 28).