Transcription factor. Binds optimally to the DNA consensus sequence 5'-YYTAATGRTTTTY-3'. May control the expression of neural adhesion molecules such as L1 or Ng-CAM during embryonic development of both the central and peripherical nervous system. May be involved in controlling adhesive processes in keratinizing epithelia. Expressed in keratinizing epithelia such as wool follicle, tongue and esophagus. Expressed at low level in thymus. Not detected in spleen, skeletal muscle, brain, heart kidney, liver and lung. Uniformly expressed in the embryonic ectoderm but is transiently down-regulated during the initiation of wool follicle morphogenesis. Subsequently expressed throughout the epithelial component of the developing follicle except for a small group of cells at the leading edge of the follicle placode. In adult follicles, expressed throughout the outer root sheath but not in the inner root sheath or hair shaft, or in dermal cells associated with the follicle. Belongs to the BAR homeobox family.