Transcriptional elongation of many eukaryotic, prokaryotic, and viral genes is tightly controlled, which contributes to gene regulation. Here we describe this phenomenon for the MAP kinase phosphatase 1 (MKP-1) immediate early gene. In rat GH4C1 pituitary cells, MKP-1 mRNA is rapidly and transiently induced by the thyrotropin-releasing hormone (TRH) and the epidermal growth factor EGF via transcriptional activation of the gene. Ca 2؉ signals are necessary for the induction of MKP-1 in response to TRH but not to EGF. Reporter gene analysis with the newly cloned rat promoter sequence shows only limited induction in response to various stimuli, including TRH or EGF. By nuclear run-on assays we demonstrate that in basal conditions, a strong block to elongation in the first exon regulates the MKP-1 gene and that stimulation with either TRH or EGF overcomes the block. Ca 2؉ signals are important to release the MKP-1 elongation block in a manner similar to the c-fos oncogene. These results suggest that a common mechanism of intragenic regulation may be conserved between MKP-1 and c-fos in mammalian cells.Long term cellular processes such as proliferation, differentiation, and neuronal plasticity are controlled by extracellular stimuli and require the synthesis of new gene products. Following stimulation, expression of immediate early genes (IEGs) precedes the expression of late response genes, the latter encoding for proteins implicated in specific functions. The best known IEG products are transcription factors such as c-Fos, c-Jun, and c-Myc, which control the expression of late response genes (1, 2). Not all IEGs encode for transcription factors. For instance, structural proteins like actin or tropomyosin, cytokines, and other regulatory proteins show a rapid and transient induction by growth factors (1).Recently, a group of dual specificity phosphatases have been identified as being IEG products induced by various stimuli (growth factors, stress, neurotransmittors, etc.; reviewed in Ref.3). These dual specificity (threonine/tyrosine) phosphatases have been named MAP kinase phosphatases (DSPs or MKPs), since they are effective in the inactivation of MAP kinases by dual dephosphorylation (4). MAP kinase phosphatase-1 (MKP-1/CL100/3CH134) is one example of this group of nuclear enzymes encoded by an IEG. Although MKP-1 gene transcription is activated by multiple signals, such as mitogens (5, 6), cytokines (7), oxidative stress (8), heat shock (8), or hypoxia (9), the precise mode of gene regulation of this immediate early gene by such stimuli remains unclear. A comparison of the 5Ј-flanking sequence of the murine and the human genes revealed two conserved Ca 2ϩ /cAMP-responsive elements (CREs) and one E box motif in the promoter region of MKP-1. Recently, the upstream stimulatory factor, a member of the basic/helix-loop-helix/leucine zipper family has been shown to bind to the E box motif and transactivate MKP-1 expression in synergy with protein kinase A (10). Since multiple intracellular signals can target MKP-1 gen...