The product of Saccharomyces cerevisiae nuclear gene PET494 is known to be required for a posttranscriptional step in the accumulation of one mitochondrial gene product, subunit III of cytochrome c oxidase (coxIII). Here we show that the PET494 protein probably acts in mitochondria by demonstrating that both a PET494-,-galactosidase fusion protein and unmodified PET494 are specifically associated with mitochondria. To define the PET494 site of action, we isolated mutations that suppress a pet494 deletion. These mutations were rearrangements of the mitochondrial gene oxi2 that encodes coxIII. The suppressor oxi2 genes had acquired the 5'-flanking sequences of other mitochondrial genes and gave rise to oxi2 transcripts carrying the 5'-untranslated leaders of their mRNAs. These results demonstrate that in wild-type cells PET494 specifically promotes coxIII translation, probably by interacting with the 5'-untranslated leader of the oxi2 mRNA.Mitochondrial genes are expressed within the mitochondrion by a genetic system distinct from that required for expression of nuclear genes. Only a few of the components of the mitochondrial genetic system of Saccharomyces cerevisiae are encoded on the mitochondrial genome (15); most are encoded by nuclear genes and imported posttranslationally into mitochondria. Interestingly, among the known nucleus-encoded elements of the mitochondrial genetic system, several have been found to be necessary for the accumulation of specific mitochondrial gene products. Some are required for processing of particular mitochondrial transcripts (12,20,43). Other nuclear gene products are necessary for steps subsequent to the accumulation of specific mitochondrial mRNAs (13, 42, 45; C. G. Poutre and T. D. Fox, manuscript in preparation; M. Costanzo, E. C. Seaver, and T. D. Fox, submitted for publication).The product of the nuclear gene PET494 was previously shown to be specifically required for accumulation of the mitochondrially encoded subunit III of cytochrome c oxidase (coxIII). pet494 mutant cells contain all the known mitochondrial gene products except for coxIII (7,16,17). However, they contain normal amounts of the mRNA encoding coxIII (42), a transcript of the mitochondrial oxi2 gene (51). The oxi2 gene is not interrupted by introns (51), and the oxi2 mRNA in pet494 mutant cells is indistinguishable, by Northern blot analysis or by Si nuclease protection experiments, from that in wild-type cells (42). Therefore, the PET494 protein must be necessary for some posttranscriptional step leading to the accumulation of coxIll.These previous studies left open two major questions. First, does the PET494 protein act directly in mitochondria or does it act in a more indirect fashion, for example, by promoting the expression of another nuclear gene? Second, is PET494 activity necessary for translation of the oxi2 mRNA, or is it required after translation to prevent rapid degradation of the coxIII polypeptide? In this paper we show that the product of the PET494 gene is indeed a mitochondrial protein, b...