The genomic DNAs of most organisms contain modified bases. In vertebrates, 5-methyl-cytosine (“C) is the only modified base; it results from enzymatic transfer of the methyl group of S-adenosyl-methionine to cytosine residues in DNA. Most but not all “C occurs in the dinucleotide 5’-CpG, and in mammals and birds approximately 50-70% of all such dinucleotides are modified. Considerable interest in DNA methylation has been created by increasing evidence linking methylation patterns to patterns of gene expression; this subject has been recently reviewed elsewhere (Razin and Riggs, Science 270, 604-610, 1980). The actual distribution of “C within specific genes can be probed with the use of bacterial restriction endonucleases, such as Hpa II and Hha I, that will not cleave recognition sequences containing “CpG. Tissue-specific differences in methylation patterns have been noted (Waalwijk and Flavell. NAR 5, 46314641, 1978; Mandel and Chambon, NAR 7, 20812103, 1979; McGhee and Ginder, Nature 280, 419420, 1979; van der Ploeg and Flavell, Cell 19, 947958, 1980) and strong correlations exist between methylation and transcriptional inactivity of integrated viral genomes (Desrosiers et al., PNAS 76, 38393843, 1979; Cohen, Cell 19, 653-662, 1980; Sutter and Doerfler, PNAS 77, 253-256, 1980). Experiments with DNA-mediated gene transfer have suggested a causal link between methylation and inhibition of gene expression (Pollack et al., PNAS 77, 6463-6467, 1980; Wigler et al., Cell 24, 33-40, 1981). Recent experiments involving oocyte microinjection and in vitro transcription with DNA molecules methylated in vitro also confirm this conclusion (recently reported at the 1981 Annual Genetics Meeting in Koln, Germany). Agents that can disrupt DNA methylation in vivo can cause diverse effects such as alterations in the pathway of differentiation and reactivation of genes residing in the inactive X chromosome (Taylor and Jones, Cell 7 7, 771-779, 1979; Mohandas et al., Science 27 7, 393-396, 1981). If, in fact, methylation can modulate gene expression, it is important to understand the factors that determine methylation patterns in the cells of vertebrate organisms. It was hypothesized that a methylation pattern, once established in somatic cells, could become inherited in progeny cells (Holiday and Pugh, Science 787, 226-232, 1975; Riggs, Cytogen. Cell Gen. 14, 9-25, 1975). Because the CpG dinucleotide, which bears most of the vertebrate methylation, is a simple palindrome, methylation on one strand could direct the methylation on a newly replicated strand through the action of a “maintenance” methylase that recognizes only hemimethylated sites. In this manner, the organism would have at least one mechanism for the stable somatic inheritance of methylation patterns. Such phenomena as maintenance of X chromosome inactivation and the stability of the differentiated phenotype could be explained in this way. In recent years, evidence has been obtained in favor of this model. Bird (JMB 7 78, 49-60, 1978) studied the distribution of methylation in the ribosomal genes of Xenopus laevis red blood cells. These genes exist in a highly methylated state. They are virtually resistant to digestion with Hpa II, although a few unmethylated Hpa II sites are randomly distributed within these genes. The sensitivity to Hpa II digestion of denatured and reannealed ribosomal genes indicated that virtually all methylated sites were symmetrically methylated, thus suggesting the action of a maintenance methylase of the type postulated above. The amplified ribosomal genes of Xenopus, however, are not methylated (Dawid et al., JMB 57, 341-360, 1970; Bird and Southern, JMB 7 18, 27-47, 1978) which suggests that the specificity for methylation does not reside in the DNA sequence immediately flanking a potential site. Similarly, the endogenous mouse mammary tumor virus sequences are heavily methylated but the integrated sequences arising by horizontal infection are not methylated (Cohen, lot. cit.). Finally, direct evidence for the passive maintenance of methylation patterns comes from two recent studies that have utilized the techniques of DNA-mediated transformation in cultured mouse cells (Pollack et al., lot. cit.; Wigler et al., lot. cit.). DNA molecules were methylated in vitro with the bacterial modification enzyme M-Hpa II, which methylates the internal cyto-
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