The int gene of phage .lambda. encodes a protein involved in site-specific recombination. Its expression is regulated differentially during successive phases of the .lambda. infective cycle. The gene is transcribed early after infection from promoter pL, and later from promoter pI. Each transcription event requires different positive activation factors, .lambda.N and cII proteins, respectively. Transcription from the pI promoter, located adjacent to int, passes through int and terminates 277 nucleotides beyond int at tI. Polymerases initiating at pL transcribe through tI and into the b segment of .lambda. DNA. The read-through pL transcript is sensitive to cleavage by endonuclease RNase III in vivo and in vitro. Two specific cuts are made by RNase III in a double-stranded structure .apprx. 260 nucleotides beyond int in the location of the tI terminator. Functionally, the processed pL transcript is unable to synthesize the int gene produce; the terminated and unprocessed pI transcript expresses int. Unprocessed pL transcripts made in hosts (Escherichia coli) defective in RNase III (rnc-) can express int. Thus, a correlation exists between processing and negative control of int expression. The place where processing occurs, some 260 nucleotides beyond int, is called sib, and the control of int expression from this site is called retroregulation. Retroregulation by sib is not restricted just to the int gene. If the sib site is clones beyond a bacterial gene, the gene is controlled by sib and RNase III. Specific models are discussed with respect to control of gene expression by RNase III from a site beyond the controlled gene.