Alternative mRNA processing is one mechanism for generating two or more polypeptides from a single gene. While many mammalian genes contain multiple mRNA 3' cleavage and polyadenylation signals that change the coding sequence of the mature mRNA when used at different developmental stages or in different tissues, only one yeast gene has been identified with this capacity. The Saccharomyces cerevisiae nuclear gene CBP1 encodes a mitochondrial protein that is required for cytochrome b mRNA stability. This 66-kDa protein is encoded by a 2.2-kb mRNA transcribed from CBPI. Previously we showed that a second 1.2-kb transcript is initiated at the CBPI promoter but has a 3' end near the middle of the coding sequence. Furthermore, it was shown that the ratio of the steady-state level of 2.2-kb CBPI message to 1.2-kb message decreases 10-fold during the induction of mitochondrial function, while the combined levels of both messages remain constant. Having proposed that regulation of 3' end formation dictates the amount of each CBPI transcript, we now show that a 146-bp fragment from the middle of CBPI is sufficient to direct carbon source-regulated production of two transcripts when inserted into the yeast URA3 gene. This fragment contains seven polyadenylation sites for the wild-type 1.2-kb mRNA, as mapped by sequence analysis of CBPI cDNA clones. Deletion mutations upstream of the polyadenylation sites abolished formation of the 1.2-kb transcript, whereas deletion of three of the sites only led to a reduction in abundance of the 1.2-kb mRNA. Our results indicate that regulation of the abundance of both CBPI transcripts is controlled by elements in a short segment of the gene that directs 3' end formation of the 1.2-kb transcript, a unique case in yeast cells.Regulation of alternative mRNA 3' end processing has emerged as an important regulatory mechanism in higher eucaryotic cells (1,3,9,10,18,19,27,35,43,51,54,56). Along with 5' end capping and exon splicing, cleavage and polyadenylation of the 3' end are required steps in mRNA maturation (42). In mammalian cells, the consensus sequence AAUAAA located 10 to 30 nucleotides upstream of the cleavage site (20,41,66,70) and a downstream GU-rich element (23,24,37,38,58,67 (13,65). CBPI also produces a 1.2-kb transcript that has its 3' end within the coding sequence. As a unicellular organism, the yeast Saccharomyces cerevisiae does not have many developmental processes; however, as a facultative anaerobe it undergoes significant changes in mitochondrial structure and function when switched from fermentation to aerobic growth (see reference 25 for a review). Surprisingly, the ratio of the 2.2-kb CBPI transcript to 1.2-kb transcript decreases 10-fold during in-* Corresponding author. Regulated use of the alternative CBPJ mRNA 3' processing sites could be influenced by several mechanisms. For instance, factors assembled with RNA polymerase II specifically at the CBPI promoter could inhibit procession through pause sites in the middle of the CBPI coding sequence and cause 3' end ...