Papillomavirus E2 proteins play a central role in regulating viral gene expression and replication. DNAbinding activity is associated with the C-terminal domain of E2, which forms a stable dimer, while the N-terminal domain is responsible for E2's replication and transactivation functions. The crystal structure of the latter domain revealed a second dimerization interface on E2 which may be responsible for DNA loop formation in the regulatory region of the human papillomavirus (HPV) genome. We investigated the biological significance of the N-terminal dimerization by introducing single amino acid substitutions into the dimerization interface. As expected, these substitutions did not influence the C-terminal dimerization and DNA-binding functions of E2. However, the mutations led to reduced transactivation of a synthetic E2-responsive reporter gene, while HPV DNA replication was unaffected. The effect of the mutations on DNA looping was visualized by atomic force microscopy. While wild-type E2 was able to generate DNA loops, all three mutant E2 proteins were defective in this ability. Our results suggest that N-terminal dimerization plays a role in E2-mediated transactivation, probably via DNA looping, a common mechanism for remote regulation of gene transcription.Several members of the human papillomavirus (HPV) family have been strongly implicated in the development of human cancers, particularly cervical cancer; of these, HPV type 16 (HPV-16) is the most common type found in tumors (25). Indeed, the presence of HPV DNA has been identified as the major risk factor for cervical carcinoma and is increasingly implicated in a number of other human tumors (4, 14). The E2 proteins of HPVs are central regulatory proteins in the viral life cycle. While considered to be a typical transcription factor, the E2 protein is equally important in the initiation of viral DNA replication. The loss or deletion of the E2 open reading frame (ORF) occurs frequently in cervical carcinoma cells when the genome of highrisk HPV types, such as HPV-16, becomes integrated into the cell genome (10). This has resulted in a hypothesis which states that the removal of E2 control results in deregulated expression of the HPV oncogenes E6 and E7. The presumed mode of action of HPV E2 is mediated by its binding to the consensus sequence AGGCN 4 GCCT, which is normally present in four copies in the upstream regulatory region (URR) of the genomes of genital HPVs at highly conserved locations relative to the transcriptional start site and origin of viral DNA replication (26). It has been proposed that binding to these sites has a hierarchical priority which at low concentrations of E2 results in transcriptional transactivation, whereas increasing amounts result in repression of the HPV early promoter (18,29,38). However, it has recently been shown that, in the case of HPV-16, E2 binding sites (E2BS) 1 and 2 (and 3 to a certain degree) are important for transcriptional repression, independent of binding affinities (37). Hence, the precise mechanism of...