We have found that intron 11 of the nucleolin gene in humans and rodents encodes a previously unidentified small nucleolar RNA, termed U20. The single-copy U20 sequence is located on the same DNA strand as the nucleolin mRNA. U20 RNA, which does not possess a trimethyl cap, appears to result from intronic RNA processing and not from transcription of an independent gene. In mammals, U20 RNA is an 80-nucleotidelong, metabolically stable species, present at about 7 x 103 molecules per exponentially growing HeLa cell. It has a nucleolar localization, as indicated by fluorescence microscopy following in situ hybridization with digoxigenin-labeled oligonucleotides. U20 RNA contains the box C and box D sequence motifs, hallmarks of most small nucleolar RNAs reported to date, and is immunoprecipitated by antifibrillarin antibodies. It also exhibits a 5'-3' terminal stem bracketing the box C-box D motifs like U14, U15, U16, or Y RNA. A U20 homolog of similar size has been detected in all vertebrate classes by Northern (RNA) hybridization with mammalian oligonucleotide probes. U20 RNA contains an extended region (21 nucleotides) of perfect complementarity with a phylogenetically conserved sequence in 18S rRNA. This complementarity is strongly preserved among distant vertebrates, suggesting that U20 RNA may be involved in the formation of the small ribosomal subunit like nucleolin, the product of its host gene.While the function of the abundant nucleoplasmic small nuclear RNAs (snRNAs) Ul, U2, U4/U6, and U5 in premRNA splicing is understood in great detail, our knowledge of the small nucleolar RNAs (snoRNAs), which represent most nonsplicing snRNAs, is much less advanced. Because of the specialization of the nucleolus in ribosome biogenesis, most snoRNAs are assumed to participate in rRNA maturation (16,61). However, direct evidence linking individual snoRNAs to processing of pre-RNA has been obtained for only a limited subset of this class: U3, which is by far the most abundant and has been one of the best studied (7,23,24,26,53), U14 (22, 25, 35, 36, 56), U8 (50), snRlO (60), and snR30 (43). Identification of snoRNA functions faces a major experimental limitation: no cell-free system is yet available that reproduces faithfully the numerous steps of rRNA processing, except for the early cleavage of the primary transcript in mammals, for which an involvement of U3 has been clearly established (26). Moreover, snoRNAs now appear to represent an increasingly complex class. In yeast cells, more than 15 snoRNA species have been identified (15,16,61