Cleavage of pre-mRNA during 3 -end formation in yeast requires two protein factors, cleavage factor I (CF I) and cleavage factor (CF II). A 5300-fold purification of CF II indicates that four polypeptides of 150, 105, 100, and 90 kDa copurify with CF II activity. The 150-kDa protein is recognized by antibodies against Cft1, the yeast homologue of the 160-kDa subunit of the mammalian cleavage/polyadenylation specificity factor (CPSF). The 100-kDa subunit is identical to Brr5/Ysh1, a yeast protein with striking similarity to the 73-kDa subunit of CPSF. The 105-kDa protein, designated Cft2 (cleavage factor two) exhibits significant homology to the CPSF 100-kDa subunit. Cft2 is cross-linked to pre-mRNA substrate containing the poly(A) site and wild type upstream and downstream flanking sequences, but not to precleaved RNA lacking downstream sequences or to substrate in which the (UA) 6 processing signal has been deleted. The specific binding of Cft2 to the RNA substrate is ATP-dependent, in agreement with the requirement of ATP for cleavage. The sequence-specific binding of Cft2 and the similarities of CF II subunits to those of CPSF supports the hypothesis that CF II functions in the cleavage of yeast mRNA 3 -ends in a manner analagous to that of CPSF in the mammalian system. These results provide additional evidence that certain features of the molecular mechanism of mRNA 3 -end formation are conserved between yeast and mammals, but also highlight unexpected differences.The formation of messenger RNA 3Ј-ends, an important step in maturation of eukaryotic mRNAs, requires two events, sitespecific endonucleolytic cleavage of primary transcripts followed by poly(A) addition to the upstream fragment. While cleavage and polyadenylation are closely coupled in vivo, the two reactions can be experimentally uncoupled and assayed separately, allowing biochemical characterization of individual components. The 3Ј-end processing of mRNA depends on both cis-acting elements and trans-acting protein factors (for reviews, see Refs. 1-4). Six protein factors act in concert to recognize, cleave, and polyadenylate mammalian pre-mRNAs. (6, 7), and the CstF binds to the GUor U-rich downstream element via its 64-kDa subunit (8).In the yeast Saccharomyces cerevisiae, three cis-acting elements are thought to be necessary and sufficient for mRNA 3Ј-end formation (Refs. 9 and 10 and references therein): the efficiency element formed by a UA repeat or related sequences, which functions by enhancing the efficiency of the positioning element; the positioning element, formed by AAUAAA or related sequences, which positions the cleavage site; and the actual cleavage site, a Py(A) n sequence. Both the efficiency and the positioning elements are found upstream of the poly(A) site.Four functionally distinct factors are required for specific cleavage and polyadenylation of yeast pre-mRNA in vitro (11). Cleavage factors I and II (CF I and CF II) are sufficient for the cleavage reaction, while specific poly(A) addition needs CF I, PAP, and polyadenylat...