Infection by Kaposi's sarcoma (KS)-associated herpesvirus (KSHV) isK aposi's sarcoma (KS), the most common neoplasm of untreated AIDS patients, is a complex lesion characterized by endothelial proliferation, neoangiogenesis, and inflammatory cell infiltration (1, 2). In 1994, a novel herpesvirus, now termed KS-associated herpesvirus (KSHV) or human herpesvirus 8 (HHV8), was identified in KS lesions (3), and compelling epidemiological and molecular evidence strongly links KSHV infection to KS tumorigenesis (see refs. 4 and 5 for review). Like all herpesviruses, KSHV deploys two alternative genetic programs in infection: (i) latency, in which only a handful of viral genes is expressed and no infectious progeny are produced, and (ii) lytic infection, in which most viral genes are expressed in an ordered cascade, viral DNA is amplified, and infectious virions are released. Examination of KS biopsy specimens shows that KSHV infection is localized to the tumorous endothelial (spindle) cells (6), the majority of which are latently infected (7). A small subpopulation, however, are lytically infected (7), and recent evidence suggests that both latency and lytic infection contribute importantly to KS pathogenesis. The latency program encodes numerous proteins that can affect cell survival and proliferation in vitro (8-12), whereas the lytic cycle encodes a variety of signaling proteins that can either directly mediate angiogenesis and inflammation (13-16) or induce expression of host proteins that can do likewise (17). In addition, KSHV latency is somewhat unstable, in that proliferating cells frequently give rise to uninfected segregants (A. Grundhoff and D.G., unpublished results); ongoing lytic infection also serves as a source of virus that can sustain the population of latently infected cells via de novo infection͞reinfection.In most cultured cells, the default pathway of KSHV infection is latency; that is, newly infected cells do not express the full lytic cascade, but rather maintain the viral DNA in the nucleus as a low copy number, circular episome whose expression is tightly restricted (18,19). Little is known about the mechanisms by which latency is established. Formally speaking, the absence of lytic gene expression might be due to the absence of one or more positive regulators, or to the presence of active repression (or both).A single KSHV lytic-cycle viral gene (ORF50) controls the switch from latency to lytic replication (20,21). Its product, the replication and transcription activator (RTA), is a transcription factor that is both necessary (22) and sufficient (20,22,23) to trigger lytic reactivation. The mechanisms by which KSHV RTA acts have been extensively studied in cells transiently transfected by reporter gene constructs. RTA harbors a potent C-terminal activation domain, deletion of which results in a loss of transactivation activity (22,24). In addition, it has an N-terminal DNA-binding motif that can mediate sequence-specific DNA binding, and high-affinity sites for RTA recognition have been iden...