A fungal immunomodulatory protein (Fip-gts) was purified from Ganoderma tsugae. The DNA encoding Fipgts was isolated from a cDNA library of G. tsugae by reverse transcriptase-polymerase chain reaction. The complete amino acid sequence of Fip-gts, deduced from the nucleotide sequence of the cDNA, was the same as LZ-8 isolated from Ganodermn lucidum. Recombinant Fip-gts was expressed as a glutathione S-transferase fusion protein in Escherichia coli with a yield of 20 mg/liter of culture. Recombinant Fip-gts, purified to homogeneity, had the same blast formation stimulatory activity to human peripheral blood lymphocytes as native Fip-gts.The yeast two-hybrid system and site-directed mutagenesis were used to determine whether dimerization of Fip-gts occurred. Deletion analysis of the N-terminal amphipathic ␣-helix domain of Fip-gts identified a sequence of about 10 amino acids responsible for inducing immunomodulatory activity. Non-functional Fip-gts deletion mutants did not form dimers, whereas wild type Fip-gts did as determined by gel filtration. A mutant with deletions at Leu-5, Phe-7, and Leu-9 lost the amphipathic characteristics of the N-terminal domain and the ability to form dimers as well as its immunomodulatory activity.Fusion of Fip-gts with the DNA binding and the transactivation domains of GAL4 resulted in the activation of the lacZ activator gene, indicating the interaction of Fip-gts with it itself. The dimerization domain was further defined by analyzing the ability of the N-terminal 13 amino acids or Leu-5, Phe-7, and Leu-9 deletion mutants of Fip-gts to interact with the wild type Fip-gts. These experiments confirmed the N-terminal amphipathic ␣-helix as the dimerization domain and suggest that the dimerization of Fip-gts may play an important role in Fip-gts immunomodulatory activity.A new family of fungal immunomodulatory proteins (Fips) 1 has recently been established. Four Fips have been isolated and purified from Ganodermn lucidum, Flammulina veltipes, Volvariella volvacea, and Ganoderma tsugae and designated as LZ-8, Fip-fve, Fip-vvo, and Fip-gts, respectively (1-3).Fips are mitogenic in vitro for human peripheral blood lymphocytes (hPBLs) and mouse splenocytes, and induce a bellshaped dose-response curve similar to that for lectin mitogens. Activation of hPBLs with Fips results in the increased production of IL-2, IFN-␥, and tumor necrosis factor-␣ molecules associated with ICAM-1 expression (2, 3). Fips can also act as immunosuppressive agents; in vivo these proteins can prevent systemic anaphylactic reactions and significantly decrease footpad edema during the Arthus reaction (1, 2). LZ-8 can also suppress autoimmune diabetes in young female non-obese diabetes mice (4). Furthermore, LZ-8 has a significant effect on cellular immunity, as shown by the increase of graft survival in transplanted allogenic mouse skin and allogenic pancreatic rats (5) without producing the severe toxic effects on pancreatic islets associated with prednisolone and cyclosporin A treatment (6, 7).The Fips identifi...