The lacS gene from the extremely thermoacidophilic archaebacterium Sulfolobus solfataricus encodes an enzyme with 0-galactosidase activity that, like other enzymes from this organism, is exceptionally thermophilic (optimal activity above 90°C), thermostable, and resistant to common (7,34). Taken together, these data suggest that transcriptional apparatus has been specifically conserved between archaebacteria and eukaryotes.Because of the extreme growth conditions of archaebacteria, in most cases it is difficult both to obtain amounts of enzymes needed for structure-function studies and to devise methodologies for genetic and molecular studies of regulatory mechanisms. Expression of archaebacterial genes in mesophilic hosts could help to overcome in part these problems, allowing comparative studies of the structure of genes and their regulatory regions and the attainment of large quantities of enzymes by using standard fermentation methods. In this study, we undertook the expression of a thermostable ,B-galactosidase from S. solfataricus in a wellcharacterized host for heterologous gene expression, Saccharomyces cerevisiae.The S. solfataricus ,-galactosidase, which has been purified to homogeneity and biochemically characterized (31), is a 240-kDa tetramer whose mechanism of reaction is similar to those of well-known P-galactosidases from mesophilic organisms but which is distinctive in its thermostability and thermophilicity. The lacS gene encoding this enzyme (8) fails to show significant sequence homology with the lacZ gene of E. coli or other known P-galactosidase-encoding genes.Besides the obvious biotechnological value due to its peculiarities, this enzyme is an interesting model for the study of thermostable enzymes.