Interferon (IFN) induction of immediate-early response genes is mediated through the signal transducers and activators of transcription (STATs). Activation of STAT1 by IFN␣ or IFN␥ through its tyrosine phosphorylation involves members of the Jak tyrosine kinases. In addition, STAT2 is activated by IFN␣, and, together with STAT1 and p48/ISGF3␥, forms the transcription factor complex ISGF3. Previous findings suggested that the STAT1-SH2 domain, which is required for the homoor heterodimerization of STAT1, also participates in the recruitment of STAT1 to the IFN-receptors, because mutations in the SH2-domain abolished STAT1 activation by IFN␥. Furthermore, STAT2 was reported to be required for the activation of STAT1 by IFN␣. We were able to induce STAT1 tyrosine phosphorylation by IFN␣/ in the absence of STAT2 or a functional STAT1-SH2 domain. In contrast, IFN␥ was unable to cause tyrosine phosphorylation of STAT1-(SH2:Arg 3 Gln). Interestingly, although STAT1 was found in the nucleus in STAT2-deficient cells, the nuclear accumulation of the tyrosine phosphorylated SH2-mutant STAT1 was impaired. In summary, our results indicate that the SH2 domain of STAT1 is not required for its ligand-dependent activation by IFN␣/. Moreover, tyrosine phosphorylation is not sufficient to target STAT1 to the nucleus; rather, dimerization appears to play a critical role in the subcellular distribution of STAT1.Interferons as well as many other cytokines and growth factors mediate their biological effects through the induction of a set of immediate-early response genes (1-10). This process depends on the activation of a family of SH2 and SH3 domain containing signal transducers and activators of transcription (STATs) (11-16).1 Activation of latent, cytoplasmic, or membrane-associated STAT proteins is accomplished through their tyrosine phosphorylation (11,(15)(16)(17), which in most cases depends on the activity of the Janus protein-tyrosine kinases (Jaks) (18 -25). IFN␥ initiation of STAT1 tyrosine phosphorylation requires the activity of Jak1 and Jak2 (18,19), whereas IFN␣/ mediates STAT1 and STAT2 activation through the kinases Jak1 and Tyk2 (18,25). Activation of STAT1 by IFN␣/ was also reported to depend on the presence of STAT2 (26,27), implying a sequential activation of STAT proteins through the IFN␣/ receptor. More recently, Li et al. demonstrated that STAT1 and STAT2 are prebound to the inactive IFNAR2c chain and that this association requires the N-terminal region of STAT2 (28).After its tyrosine phosphorylation, STAT1 either homodimerizes or forms heterodimers when STAT2 is activated by IFN␣/ to translocate to the nucleus where site-specific binding to enhancer elements leads to gene activation (29,30). Nuclear import is often controlled by binding of a karyophilic protein that contains a single or bipartite nuclear localization signal to the nuclear pore, with subsequent import in a GTP hydrolysis-dependent manner. Although the dependence of STAT1 nuclear import in response to IFN␥ on the GTPase activity of Ran/TC...