The tra2beta gene encoding an alternative splicing regulator, transformer 2-beta (Tra2beta), generates five alternative splice variant transcripts (tra2beta1-5). Functionally active, full-length Tra2beta is encoded by tra2beta1 isoform. Expression and physiological significance of the other isoforms, particularly tra2beta4, are not fully understood. Rat gastric mucosa constitutively expressed tra2beta1 isoform and specifically generated tra2beta4 isoform that includes premature termination codon-containing exon 2, when exposed to restraint and water immersion stress. Treatment of a gastric cancer cell line (AGS) with arsenite (100 microM) preferentially generated tra2beta4 isoform and caused translocation of Tra2beta from the nucleus to the cytoplasm in association with enhanced phosphorylation during the initial 4-6 h (acute phase). Following the acute phase, AGS cells continued upregulated tra2beta1 mRNA expression, and higher amounts of Tra2beta were reaccumulated in their nuclei. Treatment with small interference RNAs targeting up-frameshift-1 or transfection of a plasmid containing tra2beta1 cDNA did not induce tra2beta4 isoform expression and did not modify the arsenite-induced expression of this isoform, suggesting that neither the nonsense-mediated mRNA decay nor the autoregulatory control by excess amounts of Tra2beta participated in the tra2beta4 isoform generation. Knockdown of Tra2beta facilitated skipping of the central variable region of the CD44 gene and suppressed cell growth. In contrast, overexpression of Tra2beta stimulated combinatorial inclusion of multiple variable exons in the region and cell growth. The similar skipping and inclusion of the variable region were observed in arsenite-treated cells. Our results suggest that Tra2beta may regulate cellular oxidative response by changing alternative splicing of distinct genes including CD44.