Using fractionated HeLa cell nuclear extracts and both nuclease (DNase I) cleavage and chemical cleavage (methidiumpropyl-EDTA-Fe(II) protection methodologies, we demonstrated the presence of three proteins which interacted specifically, yet differentially, with the two VA genes of adenovirus type 2. One, previously identified as transcription initiation factor TFIIIC, bound to a site centered on the transcriptionally essential B-block concensus element of the VAI gene and, with a lower affinity, to the analogous site in the VAII gene. Another, identified as the cellular protein involved in adenovirus replication, nuclear factor I, bound to sites immediately downstream from the two VAI terminators (at approximately +160 and +200 (3,13,18). Spacing between the A and B blocks is important for maintaining transcriptional activity (3, 7). At least three cellular proteins are necessary to reconstitute transcription from the VA genes in vitro (37). These include the well-characterized RNA polymerase III and two subcellular fractions which have been functionally designated TFIIIB and TFIIIC. A component in TFIIIC has been shown by physical methods to interact directly with DNA sequences around the B-block consensus element (8,15,22 stoichiometric interaction of TFIIIB with the TFIIIC-VA gene complex, followed by rapid association of RNA polymerase III to form a complete preinitiation complex (8,20).During the course of adenovirus infection, the relative rates of synthesis of the two VA RNAs differ markedly (38). Transcription from both genes commences shortly after infection, with both RNAs being produced at roughly equivalent rates. This pattern continues until the onset of viral DNA replication, approximately 8 to 10 h postinfection, at which time VAII synthesis levels off while VAI synthesis accelerates. Thus, at late times the ratio of VAI to VAII RNA present may be as high as 40:1 (40). The transcriptional control underlying the differential expression of the two VA genes is not fully understood. Evidence points toward competition between the two VA promoters for a transcription factor present in limiting quantities (4).To understand the mechanistic basis for differential regulation of the VA genes, as well as the roles of sequence and factors in the mechanism of RNA polymerase ITT-mediated specific transcription, we undertook a study of those proteins which interact with the VA genes and their effects on transcription. With fractionated HeLa cell nuclear extracts and both DNase I (16) and methidiumpropyl-EDTA-Fe(II) (MPE) (35, 41) cleavage protection methodologies, three proteins were shown to interact specifically, yet differentially, with the two VA genes. Two of these proteins were identified as the polymerase III transcription factor TFIIIC and the DNA replication protein nuclear factor I (NFI), whereas the third, a VA gene binding protein designated VBP, was previously unrecognized. The possible functions of these proteins in VA transcription were analyzed in reconstituted systems. Whereas NFI exhibited no...