The nonhistone chromosomal protein HMG-2 was identified as a factor necessary for activation in a defined transcription reaction in vitro containing RNA polymerase II and purified factors. Activation occurred on all promoters assayed except that of the immunoglobulin IgH gene. TFIIA was required for stimulated levels of transcription. The activation process depended on the presence of TAFs in the TFIID complex and generated a preinitiation complex from which TFIIB dissociated more slowly. However, titration of TFIIB over three orders of magnitude did not obviate the requirement of activator and HMG-2 to achieve stimulated levels of transcription. Analysis of the activated reaction identified the TFIID-TFIIA complex as the first stage of modification during activation. These results suggest that activation can occur solely in the presence of the basal factors, activator protein, and an "architectural" HMG factor, which probably stabilizes an activated conformation of the TFllD-TFIIA-promoter complex.[Key Words: HMG-1/2; transcriptional activation; coactivator] Received March 13, 1995; revised version accepted April 21, 1995.The basal reaction for initiation of transcription by RNA polymerase II (Pol II) can be reconstituted with distinct protein factors that assemble on the promoter in an ordered fashion (for review, see Buratowski 1994). This process is nucleated by recognition of the TATA element by TFIID (or the TATA-binding protein, TBP) and culminates, alter assembly, with conversion of the initiation complex into the elongation complex. The basal factors required for this reaction have been purified to homogeneity, and the genes for many have been cloned. On promoters such as the adenovirus major late [MLP), this set of factors is comprised of TFIID, TFIIB, TFIIE, TFIIF, TFIIH, and Pol II. The factors TFIIA and TFIIJ can stimulate the basal reaction (Samuels et al. 1982;Cortes et al.