The human transcription factor, UEF3, is important in regulating the activity of the urokinase plasminogen activator (uPA) gene enhancer, The UEF3 DNA target site is a regulatory element in the promoters of several growth factor and protease genes, We reported previously that purified UEF3 is a complex of several subunits, In this paper we report the cloning of the cDNA of one of the subunits which encodes for a novel human homeodomain protein, which we]have termed Prep1, The Prep1 homeodomain belongs to the TALE class of homeodomains, is most closely related to those of the TGIF and Meis1 proteins, and like these, recognizes a TGACAG motif, We further identify the other UEF3 subunit as a member of the Pbx protein family, Unlike other proteins known to interact with Pbx, Prep1 forms a stable complex with Pbx independent of DNA binding. Heterodimerization of Prep1 and Pbx results in a strong DNA binding affinity towards the TGACAG target site of the uPA promoter, Overall, these data indicate that Prep1 is a stable intracellular partner of Pbx in vivo.