Previously testicular peritubular cells have been shown to produce a paracrine factor PModS that promotes Sertoli cell differentiation. This mesenchymal-epithelial cell interaction appears to regulate a number of Sertoli cell differentiated functions including transferrin gene expression. The current study was designed to identify PModS-activated response elements in the transferrin promoter and correlate this with Sertoli cell differentiation that occurs during testis development. The 3-kb transferrin promoter was digested down to approximately 200-bp fragments. Nuclear extracts from Sertoli cells stimulated with PModS were used in gel mobility shift assays. Two promoter regions located at -2.4 kb and -1.9 kb were designated SE1 and SE2. PModS promoted the presence of factors in Sertoli cell nuclear extracts that bind SE1 and SE2. Displacement studies demonstrated that SE1 and SE2 are distinct. A transferrin promoter-reporter construct containing these apparent response elements was activated by PModS, while a minimal transferrin promoter by 600bp excluding SE1 and SE2 was only partially stimulated by PModS. Therefore, PModS appears to in part activate the transferrin promoter through SE1 and/or SE2. Gel shift assays with Sertoli cell nuclear extracts and 20-day-old testis extracts were the same. Interestingly, the nuclear extract from a newborn testis also had a gel shift. Therefore, some of the nuclear factors stimulated by PModS in Sertoli cells and present in mid-pubertal testis were also present at birth upon completion of embryonic development. Previously transferrin expression has been shown to increase significantly at the onset of puberty.(ABSTRACT TRUNCATED AT 250 WORDS)