To define the morphological transforming region II (mtrl) of human cytomegalovirus (HCMV), a series of subclones of the Xba I/BamHI fragment EM was constructed in vitro and tested for focus-forming activity and tumorigenicity. A 980-base-pair subclone of fragment EM was identified, and its nucleotide sequence revealed three small open reading frames (ORFs), encoding 79, 83, and 34 amino acid residues. Si nuclease analysis of HCMV-infected cells DNA of human cytomegalovirus (HCMV) contains three transforming fragments, which have been mapped in the long unique region of the viral genome (see Fig. 1 Left). A minimal region of 558 base pairs (bp) (pCM4127) was localized in the Xba 1/HindIII fragment of HCMV strain AD169 (map unit 0.123-0.140) and designated morphological transforming region I (mtri). pCM4127 DNA was reported to cause one-step focal transformation of primary Wistar rat embryo cells and NIH 3T3 mouse cells (1, 2). This sequence was noncoding and contained a stem-loop structure (3) analogous to an insertion-like element.Two distinct transforming regions were mapped in the 20-kilobase (kb) Xba I fragment E (XbaI-E) of HCMV Towne DNA (map unit 0.680-0.770). Cloned XbaI-E will immortalize diploid Syrian hamster embryo cells and induce the neoplastic transformation of established rodent cell lines (4). The left-hand 3-kb Xba I/BamHI EM segment of XbaI-E, designated mtrII, and a right-hand 7.6-kb Xba I/BamHI EJ segment, designated mtrIII, were independently capable of inducing tumorigenic transformation of established rodent cells (5). Cell lines transformed individually by EJ or EM and their tumor derivatives retained the EM but not the EJ sequence (5). Similarly, only EM sequences were retained in the transformed and tumor-derived cells induced by cotransfection of cloned EJ and EM plasmids (unpublished data). These data suggested that EM sequences were required both to initiate and to maintain the transformed phenotype. In contrast, EJ sequences were required only for the initiation of transformation, perhaps by a hit-and-run mechanism analogous to the BglII-N fragment of herpes simplex virus 2 or pCM4127 of HCMV AD169 (3).In the present study we localized a minimal 980-bp transforming Ban II-Xho I region within the HCMV Towne Xba I/BamHI EM fragment and determined its nucleotide sequence. ¶ Nucleotide sequence analysis identified three potential open reading frames (ORFs) within the 980-bp fragment, and S1 nuclease protection assay revealed the presence of "early" RNA transcripts in infected cells. In addition, noncoding DNA sequence elements were observed with the potential to form stem-loop structures.