Transforming growth factor 13 (TGF-3) is the name of a group of closely related polypeptides characterized by a multiplicity of effects, including regulation of extracellular proteolysis and turnover of the extracellular matrix. Its cellular mechanism of action is largely unknown. TGF-131 is a strong and fast inducer of type 1 plasminogen activator inhibitor gene transcription. We have identified a TGF-131-responsive element in the 5'-flanking region of the human type 1 plasminogen activator inhibitor gene and shown that it is functional both in its natural context and when fused to a heterologous nonresponsive promoter. Footprinting and gel retardation experiments showed that two different nuclear factors, present in extracts from both TGF-131-treated and nontreated cells, bind to adjacent sequences contained in the responsive unit. A palindromic sequence binds a trans-acting factor(s) of the CCAAT-binding transcription factor-nuclear factor I family. A partially overlapping dyad symmetry interacts with a second protein that much evidence indicates to be USF. USF is a transactivator belonging to the basic helix-loop-helix family of transcription factors. Mutations which abolish the binding of either CCAAT-binding transcription factor-nuclear factor I or USF result in reduction of transcriptional activation upon exposure to TGF-131, thus showing that both elements of the unit are necessary for the TGF-131 response. We discuss the possible relationship of these findings to the complexity of the TGF-13 action.Transforming growth factor I0 (TGF-3) is a general regulator of cellular activities with a multiplicity of effects in the normal organism. TGF-ps include a group of chemically closely related 25,000-Mr dimeric polypeptides, TGF-pl, , with largely identical effects. (Unless otherwise specified, "TGF-P3" will refer to TGF-fi1 heterodimers throughout the rest of the text.) TGF-,B can be synthesized by most cells of the organism and is stored in large quantities in blood platelets. It acts presumably in an autocrine and paracrine manner. Besides affecting cellular proliferation, TGF-3 influences the differentiation of several cell types; for instance, it inhibits myogenesis and adipogenesis and stimulates chondrogenesis. TGF-, regulates the turnover of the extracellular matrix. It stimulates production by fibroblasts of extracellular matrix components, such as type I, II, and III procollagen, fibronectin, and proteoglycans, and of cellular receptors for such proteins. TGF-1 inhibits production of enzymes catalyzing degradation of the extracellular matrix and stimulates production of inhibitors of such enzymes (22,27,31,41,47).It has previously been demonstrated that TGF-p induces type 1 inhibitor of plasminogen activators (PAI-1) in cultured human fibroblasts (24,26). PAI-1 is an important regulator of plasminogen activation and thus of extracellular proteolytic events, including fibrinolysis and degradation of the extracellular matrix (1, 6). The induction of PAI-1 protein by * Corresponding author. TGF-0 was la...