Many eukaryotic transcription factors are bimodal in their regulatory properties and can both repress and activate expression of their target genes. These divergent transcriptional properties are conferred through recruitment of auxiliary proteins, denoted coactivators and corepressors. Repression plays a particularly critical role in the functions of the nuclear receptors, a large family of ligand-regulated transcription factors involved in metazoan development, differentiation, reproduction, and homeostasis. The SMRT corepressor interacts directly with nuclear receptors and serves, in turn, as a platform for the assembly of a larger corepressor complex. We report here that SMRT is expressed in cells by alternative mRNA splicing to yield two distinct variants or isoforms. We designate these isoforms SMRT␣ and SMRT and demonstrate that these isoforms have significantly different affinities for different nuclear receptors. These isoforms are evolutionarily conserved and are expressed in a tissue-specific manner. Our results suggest that differential mRNA splicing serves to customize corepressor function in different cells, allowing the transcriptional properties of nuclear receptors to be adapted to different contexts.Nuclear receptors are transcription factors that play multiple roles in metazoan development and physiology (1-6). Nuclear receptors operate by binding to specific promoter elements on DNA and by modulating transcription of adjacent target genes in response to hormone ligand (3, 7-9). The nuclear receptors include, among others, the thyroid hormone receptors (TRs), 1 the retinoic acid receptors (RARs), and the retinoid X receptors (RXRs) (3-5, 7, 10, 11). Each of these receptors localizes to the nucleus and binds to DNA in both the absence and presence of hormone ligand. These receptors can repress transcription of their target genes in the absence of hormone, but activate target gene transcription upon binding to hormone agonist (3, 7-9, 12, 13). This bimodal transcriptional regulation is accomplished through a hormone-regulated exchange of a corepressor complex, found on the nuclear receptor in the absence of hormone, for a coactivator complex recruited in the presence of hormone agonist (14). Corepressor and coactivator protein complexes regulate transcription through direct interaction with the basal transcription machinery and through modification of chromatin structure (15).Both activation and repression are essential for correct receptor function. For example, RAR-mediated repression is required for appropriate anterior/posterior segregation in vertebrates, and disruption leads to aberrant head formation during murine development (16). TR-mediated repression is required for correct Xenopus larval development, and abrogation of repression leads to premature metamorphosis (17). Aberrations in the regulation of repression can result in human disease. For example, resistance to thyroid hormone syndrome, an inherited endocrine disorder, has been mapped to mutations in TRs that disrupt the hormone-...