Eukaryotic translation initiation factor 2B (eIF2B) is a guanine nucleotide exchange factor (GEF) that converts its substrate, eIF2, from an inactive eIF2-GDP binary complex to eIF2-GTP. This active complex binds charged initiator tRNAMet (Met-tRNAiMet) forming a ternary complex that interacts with eIF3 and the 40S ribosomal subunit. Following addition of mRNA, associated initiation factors, and the 60S ribosomal subunit, the G-protein cycle is completed by hydrolysis of eIF2-bound GTP and the release of eIF2-GDP from the ribosome (reviewed in references 14, 31, and 42). Thus, the functions of eIF2 and eIF2B are believed to be similar to those of the small GTPases and exchange factors, respectively, of the RAS superfamily (4). Recent three-dimensional structure determinations have demonstrated that while the nucleotide binding domains of the G proteins are very similar, GEF structures differ markedly from one another, each employing different amino acid motifs to drive the release of GDP (8, 41). eIF2 and eIF2B are complex proteins of three (α to γ) and five (α to ɛ) nonidentical subunits, respectively. The subunit complexity of eIF2B reflects, at least in part, its novel mechanism of regulation. Four protein kinases, called PKR, HCR (HRI), PERK (PEK), and GCN2, specifically phosphorylate the seryl residue at position 51 of the α subunit of eIF2 (eIF2α) under different stress conditions (12, 23, 40). Phosphorylation of eIF2α at this site converts eIF2 from a substrate into an inhibitor of eIF2B (33, 38), thus inhibiting global translation initiation. In the yeast Saccharomyces cerevisiae, the protein kinase GCN2 phosphorylates eIF2α in response to amino acid or purine starvation. Under moderate amino acid starvation conditions, the level of phosphorylated eIF2 produced is not sufficient to inhibit total protein synthesis; however, it specifically enhances translation of GCN4 mRNA, which encodes a transcriptional regulator of amino acid biosynthetic genes (24). GCN4 translation is inversely coupled to ternary complex concentration and thus to eIF2B activity by the presence of inhibitory short open reading frames in the 5′ leader of its mRNA. Recently, homologues of GCN2 have been identified in Drosophila melanogaster (32) and mammals (2), indicating that this kinase may be universally conserved in eukaryotes. By using both genetic and biochemical methods, it has been demonstrated that three subunits of S. cerevisiae eIF2B (α, β, and δ encoded by GCN3, GCD7, and GCD2, respectively) act together to mediate regulation of eIF2B activity in response to phosphorylation of its substrate, eIF2 (33, 34, 43). We also found that the ɛ subunit of eIF2B, encoded by GCD6 in yeast, is a catalytic subunit of eIF2B: the ability of extracts from yeast cells overexpressing eIF2Bɛ alone to dissociate GDP from eIF2-GDP binary complexes was higher than that of nonoverexpressing cell extracts (33). Interestingly, eIF2Bɛ catalyzed nucleotide exchange at a reduced rate compared with that of the five-subunit eIF2B complex. Others have obtained similar results expressing mammalian eIF2Bɛ cDNA in insect cells (18). In addition, we showed that the ɛ and γ subunits can form an eIF2B catalytic subcomplex in the absence of the other three subunits. This γɛ catalytic subcomplex promoted release of GDP from eIF2-GDP at a higher rate than ɛ alone and could also bind stably to eIF2 (33), but in contrast to the full five-subunit complex, nucleotide exchange and binding of this subcomplex to eIF2 were not affected by the phosphorylation of eIF2α. In this study, we decided to follow up on our observation that eIF2Bɛ showed catalytic activity to determine what regions or residues of this polypeptide are important for its GEF activity. Examination of the primary sequence of eIF2Bɛ reveals no significant sequence identity with any other GEF. However, eIF2Bɛ does share significant sequence similarity with eIF2Bγ (5, 35) (see Fig. Fig.1),1), to which it binds, forming the eIF2B catalytic subcomplex (33). In addition, eIF2Bγ and eIF2Bɛ both share extended sequence similarity with two other protein families found mainly in bacteria–nucleoside triphosphate (NTP)-hexose pyrophosphorylases and acyltransferases (see Fig. Fig.1A).1A). It has been proposed that the region of similarity with the bacterial NTP-hexose pyrophosphorylase family represents a nucleotide binding domain composed of a modified P-loop and magnesium ion coordinating region (28), suggesting a role for nucleotide binding by eIF2B in the guanine nucleotide exchange reaction. Finally, it has been shown recently that the sequence motif shared between the extreme C termini of eIF2Bɛ and eIF5 (a potential GTPase-activating protein for eIF2) (28) provides a binding site in both proteins for the β subunit of their common substrate eIF2 (1). FIG. 1 Genetic characterization of novel mutations in yeast eIF2Bɛ. (A) eIF2Bγ and eIF2Bɛ subunits encoded by yeast genes GCD1 and GCD6 are shown schematically from N to C termini. The patterns indicate regions of significant sequence ... We show here that the C-terminal region of eIF2Bɛ is responsible for binding to the substrate eIF2 and contains the catalytic domain for GEF activity. Missense alleles in which single conserved amino acids within this region were changed dramatically reduce the GEF activity of eIF2Bɛ without affecting eIF2 binding, indicating that different residues are responsible for these two functions. In contrast, the N-terminal half of eIF2Bɛ is required for its interactions with the other eIF2B subunits. Missense alleles, where single conserved residues have been altered, in this region of the gene affect the stimulation of eIF2B activity observed upon eIF2B complex formation without detectably altering binding to eIF2. The implications of these results for eIF2B function are discussed.