Activation of adult myoblasts called satellite cells during muscle degeneration is an important aspect of muscle regeneration. Satellite cells are believed to be the only myogenic stem cells in adult skeletal muscle and the source of regenerating muscle fibers. Upon activation, satellite cells proliferate, migrate to the site of degeneration, and become competent to fuse and differentiate. We show here that the transcription factor polyomavirus enhancer activator 3 (PEA3) is expressed in adult myoblasts in vitro when they are proliferative and during the early stages of differentiation. Overexpression of PEA3 accelerates differentiation, whereas blocking of PEA3 function delays myoblast fusion. PEA3 activates gene expression following binding to the ets motif most efficiently in conjunction with the transcription factor myocyte enhancer factor 2 (MEF2). In vivo, PEA3 is expressed in satellite cells only after muscle degeneration. Taken together, these results suggest that PEA3 is an important regulator of activated satellite cell function.In mature muscle, activation of adult myoblasts called satellite cells is one mechanism for the maintenance of skeletal muscle mass. Although quiescent in normal muscle, these cells are activated to proliferate and differentiate in response to muscle damage or degeneration, thereby regenerating muscle fibers (5). To identify regulatory molecules in satellite cells that respond to external signals and control gene expression during satellite cell activation, we analyzed the regulation of the human -enolase gene, which belongs to a relatively small group of muscle-specific genes expressed in proliferating, undifferentiated myoblasts from adult muscle (42). We showed that expression of the -enolase gene in undifferentiated myoblasts is independent of the basic helix-loop-helix (bHLH) family of transcription factors, including MyoD, myogenin, myf-5, and MRF4 (42). Through comparative deletion-transfection analyses of myoblast and fibroblast cell lines, we identified an enhancer from the human -enolase gene that promoted highlevel myoblast-specific expression of a reporter gene (49). After myoblast differentiation into myotubes, the activity of the enhancer declined dramatically, suggesting that other cis-regulatory elements are responsible for maintaining -enolase gene expression in myotubes. Electrophoretic mobility shift assays and mutational analysis indicated that proteins present in myoblast nuclear extracts specifically bound to an ets motif within the enhancer required for high-level activity in myoblasts (49). ETS proteins comprise a family of transcription factors that share a conserved 85-amino-acid domain necessary for specific binding to purine-rich DNA sequences with a GGA core consensus (22, 38). They have been shown to be involved in regulating gene expression and controlling cell growth, differentiation, and migration in a variety of biological systems (21, 47, 52).A feature of many ETS domain proteins is that they form complexes with transcription factors of un...