Sm and Sm-like (LSm) proteins form heptameric complexes that
are involved in various steps of RNA metabolism. In yeast, the
Lsm1–7 complex functions in mRNA degradation and is
associated with several enzymes of this pathway, while the complex
LSm2–8, the composition of which largely overlaps with
that of LSm1–7, has a role in pre-mRNA splicing. A human
gene encoding an LSm1 homolog has been identified, but its role
in mRNA degradation has yet to be elucidated. We performed
subcellular localization studies and found hLSm1 predominantly
in the cytoplasm. However, it is not distributed evenly; rather,
it is highly enriched in small, discrete foci. The endogenous
hLSm4 is similarly localized, as are the overexpressed proteins
hLSm1–7, but not hLSm8. The foci also contain two key
factors in mRNA degradation, namely the decapping enzyme hDcp1/2
and the exonuclease hXrn1. Moreover, coexpression of wild-type
and mutant LSm proteins, as well as fluorescence resonance energy
transfer (FRET) studies, indicate that the mammalian proteins
hLSm1–7 form a complex similar to the one found in yeast,
and that complex formation is required for enrichment of the
proteins in the cytoplasmic foci. Therefore, the foci contain
a partially or fully assembled machinery for the degradation
of mRNA.