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A more recent version of this article appeared on May 1, 2008
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Submitted on October 22, 2007
Revised on January 25, 2008
Accepted on February 13, 2008

*Department of Orthopaedic Surgery, New York University School of Medicine, New York, NY, 10003;
Department of Cell Biology, New York University School of Medicine, New York, NY 10016;
Institute of Pathogenic Biology, Shandong University School of Medicine, Jinan, Shandong 250012, China;
State Key Laboratory of Trauma, Burns and Combined Injury, Trauma Center, Institute of Surgery Research, Daping Hospital, Third Military Medical University, Chongqing 400042, China
Monitoring Editor: William Tansey
Id proteins play important roles in osteogenic differentiation; however, the molecular mechanism remains unknown. In this study we established that Id proteins, including Id1, Id2 and Id3, associate with Cbfa1 to cause diminished transcription of the alkaline phosphatase (ALP) and osteocalcin (OCL) gene leading to less ALP activity and osteocalcin (OCL) production. Id acts by inhibiting the sequence-specific binding of Cbfa1 to DNA and by decreasing the expression of Cbfa1 in cells undergoing osteogenic differentiation. p204, an interferon-inducible protein that interacts with both Cbfa1 and Id2, overcame the Id2-mediated inhibition of Cbfa1-induced ALP activity and OCL production. We show that (1) p204 disturbed the binding of Id2 to Cbfa1 and enabled Cbfa1 to bind to the promoters of its target genes and (2) that p204 promoted the translocation from nucleus to the cytoplasm and accelerated the degradation of Id2 by ubiquitin-proteasome pathway during osteogenesis. Nucleus export signal (NES) of p204 is required for the p204-enhanced cytoplasmic translocation and degradation of Id2, since a p204 mutant lacking NES lost these activities. Take together, Cbfa1, p204 and Id proteins form a regulatory circuit and act in concert to regulate osteoblast differentiation.