The rfp/ret transforming gene was generated by DNA rearrangement which occurred during transfection of NIH 3T3 cells. The amino-terminal half of Rfp with a RING finger motif was fused to the truncated Ret receptor tyrosine kinase, leading to a transforming sequence, Rfp/Ret. In the present study, to elucidate the importance of a RING finger motif for its transforming activity, we mutated cysteine or histidine residues present in the motif that are believed to be crucial for the tertiary structure of the protein. Substitution of Cys-16, Cys-31, or His-33 markedly decreased the transforming activity of Rfp/Ret. These mutations also resulted in a striking decrease of tyrosine phosphorylation of the mutant proteins in transfectants. In contrast, mutations of Cys-118 or His-124 in the second cysteine/histidine-rich motif (called B box) of Rfp/Ret did not affect its activity. These results thus indicated that the RING finger structure is critical for the full transforming activity of Rfp/Ret.