While early steps of gene expression, such as transcription preinitiation, are known to often be rate limiting and to be regulated by such stimuli as steroid hormones, the potential impact of downstream steps, including splicing, on the mRNA production rate is unknown. In this work, we studied the effects of the transcriptional stimulus estradiol on cyclin D1, PS2, and c-fos gene expression by measuring the levels of RNA polymerase II on the DNA templates, the levels of nascent transcripts associated with RNA polymerase II, and the levels of unspliced, partially spliced, and fully spliced RNAs. We demonstrated that the efficiency of cotranscriptional splicing of the first intron was higher in the case of cyclin D1 than with PS2 and potentiated the cyclin D1 mRNA production rate. The mechanism involved in cotranscriptional splicing depended on the level of serine 5 phosphorylation of RNA polymerase II at the gene 5 end and on the recruitment of CBP80, one of the two subunits of the cap binding complex, which stimulates splicing of the promoter-proximal intron. Our data indicate that mRNA production from a subset of estradiol-stimulated genes, such as cyclin D1, could occur in a very efficient "assembly line." In contrast, we demonstrated for the first time that despite a strong transcriptional activation of the PS2 gene, the production of mRNA is not optimized owing to inefficient cotranscriptional RNA processing.Gene expression plays a key role in stimulus-dependent regulation of cellular metabolism and fate. Gene expression is a multistep process starting in the nucleus with the synthesis of premessenger RNAs (pre-mRNAs) and with RNA processing (including 5Ј-and 3Ј-end processing and splicing). The mature mRNAs are then exported to the cytosol, where they are translated. Many stimuli, such as steroid hormones, affect the cellular levels of various mRNAs by essentially modulating the transcriptional activities of their target genes. Indeed, steroid hormones (e.g., estrogens) bind to intracellular receptors, which act as ligand-dependent transcription factors and belong to the nuclear receptor superfamily (for reviews, see references 19 and 34). When activated by ligands, nuclear receptors bind to their target gene promoters and serve as platforms for the subsequent recruitment of transcriptional coregulators (for a recent review, see reference 33). With few exceptions (1,26,49), most of the efforts to understand the effects of steroid hormones on mRNA production by their target genes have been made by studying their impact on early steps of the transcriptional process. In this context, a large set of transcriptional coregulators has been shown to play a key role in transcription preinitiation by modulating the chromatin structure of the DNA templates and by recruiting RNA polymerase II (Pol II) (33).However, the transitions between preinitiation, initiation, and transcription elongation can also be rate-limiting steps in various models (8,43,44). These transitions involve specific phosphorylations of the carboxy...