The overexpression of SPRR1B in bronchial epithelium is a marker for early metaplastic changes and the loss of its expression is associated with an irreversible malignant transformation. In the present study, we have used a model system consisting of normal and malignant bronchial epithelial (BE) cells to elucidate the dierential transcriptional control of SPRR1B. SPRR1B expression is either detectable or PMA (phorbol 13-myristate 12-acetate) -inducible in several malignant BE cells including squamous, adeno, small and large cell carcinomas. Loss of SPRR1B expression is correlated well with the lack of strong in vivo protein-DNA interactions at the 7152 bp promoter, which contains two functional TRE sites. Even though the basal level AP-1 protein DNA binding pattern is dierent between normal and malignant cells, PMA signi®cantly enhances Jun and Fos binding to the consensus TRE site in both cell types. Intriguingly, the composition of AP-1 protein binding to the 7152 to 786 bp SPRR1B promoter is quite dierent. In untreated cells, SPRR1B promoter is predominantly occupied by JunD and Fra2. PMA signi®cantly induced binding of JunB and Fra1 in normal cells, while JunB and Fra2 bound to TREs in the malignant cells. Overexpression of fra1 in malignant cells signi®cantly enhanced SPRR1B promoter activity. In contrast, overexpression of fra2, but not fra1, strongly reduced both basal and PMA-inducible promoter activities in normal cells. Together, these results indicate that either temporal expression and/or dierential activation of AP-1 proteins, especially Fra1 and Fra2, might contribute to the dysregulation of terminal dierentiation marker, SPRR1B, expression in various BE cells. Oncogene (2001) 20, 634 ± 644.