Stimulation of class II gene transcription by activators requires the general factors and coactivators (1-4). Some of the coactivators are associated with TBP, the TATA box-binding protein, and RNA polymerase II, respectively (5-8). There is also another group of coactivators that appear not to be integral parts of the basal machinery. These soluble cofactors were identified on the basis of their capacity to enhance activation of transcription in vitro (9-12). In our initial study we had isolated a fraction from HeLa nuclear extracts, termed USA, for upstream factor stimulatory activity, that was essential for activator-dependent transcription in the presence of a complete set of general factors (9). Subsequent studies resolved the USA fraction into a minimum of four different positive cofactors, termed PC1 to PC4 (9-15). Several specific components of the USA fraction and related cofactors have been characterized in recent years. Examples include topoisomerase I, also called PC3 or Dr2 (13, 16), topoisomerase II (17), high mobility group proteins (18), and a protein called p15 or PC4 (14,15). Although PC1 and PC2 were discovered earlier, their identities are yet unresolved. Here we have identified human poly(ADP-ribose) polymerase (PARP) as one active component of the PC1 fraction.Mammalian PARP is a nuclear chromatin-associated protein of size 114 kDa that catalyzes the transfer of ADP-ribose units from NAD ϩ to nuclear protein acceptors (19)(20)(21)(22). Up to several hundred ADP-ribose units are transferred to PARP itself. Subsequently PARP modifies cellular proteins that are located within the chromatin. Target proteins include topoisomerases I and II, histones, and high mobility group proteins (23). The activity of PARP is strongly stimulated by the presence of nicks and strand breaks in DNA. These observations have contributed to the idea that PARP mediates stressinduced signaling and functions in an NAD-dependent manner in certain DNA repair processes (19,24,25). There is convincing evidence for the binding of PARP to damaged DNA containing single-strand breaks and nucleotide excisions. Automodification releases PARP from DNA, thus providing a mechanism for rendering DNA more accessible to the DNA repair machinery (23). In the absence of NAD, PARP inhibits DNA repair through binding to damaged DNA (26). Other functions proposed for PARP include roles in cellular NAD depletion (27), antirecombination and genomic stability (28), and DNA replication (29). PARP also serves as a marker for the onset of apoptosis, after which it is cleaved by proteases into DNA-binding and catalytic fragments (30).Earlier studies demonstrated that PARP suppresses nickinduced transcription in crude cell-free systems, whereas it was not required for basal transcription in systems reconstituted with purified factors (31). Moreover, inhibitors of PARP failed to demonstrate an essential role in transcription (32). However, PARP also proved to be nonessential in vivo for most of the functions suggested by the in vitro studie...