Productively infected bovine fibropapillomas were examined for bovine papillomavirus type 1 (BPV-1) E7 localization. BPV-1 E7 was observed in the cytoplasm of basal and lower spinous epithelial cells, coexpressed in the cytoplasm of basal cells with the E5 oncoprotein. E7 was also observed in nucleoli throughout the basal and spinous layers but not in the granular cell layer. Ectopic expression of E7 in cultured epithelial cells gave rise to localization similar to that seen in productive fibropapillomas, with cytoplasmic and nucleolar expression observed. Consistent with the coexpression of E7 and E5 in basal keratinocytes, BPV-1 E7 cooperated with E5 as well as E6 in an anchorage independence transformation assay. While E5 is expressed in both basal and superficial differentiating keratinocytes, BPV-1 E7 is only observed in basal and lower spinous epithelial cells. Therefore, BPV-1 E7 may serve to modulate the cellular response of basal epithelial cells to E5 expression.Papillomaviruses are causative agents for a variety of epithelial neoplasms in vertebrates. Typically, virus-induced epitheliomas are benign lesions containing episomal viral DNA in proliferative basal epithelial cells, producing virus within superficial differentiated epithelial cells. The role of virus-encoded oncogenes (E5, E6, and E7) in the maintenance of viral DNA within proliferative basal epithelial cells and/or the role of these oncogenes in the transition to vegetative viral DNA amplification and virus production has yet to be fully defined. The separation of papillomavirus oncogenes into at least three separate polypeptides (E5, E6, and E7) may reflect a requirement for separate regulation of expression and activity of each product in the virus life cycle. One area of uncertainty in papillomavirus biology has been the location of each oncoprotein within the stratified epithelium of a virus-induced epithelioma.While bovine papillomavirus type 1 (BPV-1) encodes E5, E6, and E7 oncoproteins, only mutation of BPV-1 E5 decreases transformed cell focus formation by BPV-1 viral DNA. Mutations in the BPV-1 E6 or E7 genes have little effect upon focus formation or viral DNA replication, although there is a decrease in anchorage-independent growth and tumorigenicity (12,15,20). The modest oncogenic potency of BPV-1 E6 and BPV-1 E7 expressed from the wild-type BPV-1 genome is due to repression by two separate repressor mechanisms that, when mutated, reveal cooperative transformation by BPV-1 E6 and BPV-1 E7 (35). Since both BPV-1 E6 and BPV-1 E7 are thought to be translated from the same mRNA transcript, it was unproven if BPV-1 E7 had a direct role in transformation together with BPV-1 E6. Correlating with this observation, BPV-1 E6 strongly transforms murine C127 cells when expressed from retroviral long terminal repeats, whereas E7 did not (27).The E6 proteins of human papillomavirus type 16 (HPV-16) (16E6) and BPV-1 E6 bind to the cellular targets E6AP, ERC-55, and paxillin through interaction with homologous peptide sequences found on the t...