SummaryInterferon y (IFN-'r) is the most potent inducer of class II major histocompatibility complex (MHC) genes. This induction is uniquely mediated by three DNA elements in the promoter region of class II MHC genes. One of these DNA elements, Y, contains an inverted CCAAT box. Previously, we have screened a Xgt11 library for Y-binding proteins and identified the YB-1 gene. Here we provide evidence that YB-1 can repress the IFN-3~ induction of class II MHC promoter as well as the Invariant chain (Ii) gene which also contains a Y element in its promoter. This was demonstrated by cotransfecting a YB-1 expression vector with promoter-reporter gene constructs. As an alternate approach, an effcient transient transfection system was developed which resulted in a )70% transfection efficiency. Transfection of YB-1 by this procedure resulted in the near abrogation of IFN-7 induced HLA-DR antigen and mRNA expression. These findings show the functional suppression of class II MHC gene induction by the YB-1 protein.C lass II MHC gene products play a variety of important roles in immune regulation (reviewed in 1-3). These molecules control the acquisition of the mature T cell repertoire and serve as restriction elements for CD4 § T cells. These functions place the regulation of class II MHC antigens as an important topic in immune regulation. The expression of class II MHC genes is primarily regulated at the level of transcription. In the past few years, we and others have delineated an array of cis-acting elements important for optimal class II gene regulation and have identified proteins that bind to these elements. The cis-acting regulatory elements of the DRA gene are probably the best analyzed, and include three elements (S, X, and Y) that are also found in other class II MHC promoters (4-7). The X and Y elements constitute the conserved class II box present in the upstream region of all class II MHC promoters studied to date (8, 9). These two elements are separated by a 19-21-bp spacing that is conserved in length but not in sequence. The Y element contains an inverted CCAAT element, and the X element has been functionally divided into two subregions, X1 and X2, based on the separate interactions of these subregions with the RF-X and hXBP-1 recombinant DNA-binding proteins, respectively (10, 11). The S sequence (also known as H, or W/Z which is a larger DNA sequence) is a heptamer sequence located upstream of the class II box (12-17). These three elements are important for basal gene transcription, and thus far, they are inseparable from elements required for the IFN-T induction of class II MHC genes (12-19).The YB-1 DNA-binding protein was initially identified by using radiolabeled Y element sequence to screen a ~,gt11 expression cDNA library (20). The recombinant YB-1 protein exhibits specificity for the Y element because mutations of an inverted CCAAT sequence in the Y element can abrogate its ability to interact with YB-1. An intriguing feature is the inverse relationship between levels of YB-1 and DRA in IFN-3,-a...