Transcriptional regulator that can both act as a coactivator or a corepressor depending on the context. Lacks DNA-binding domains and acts by associating with other transcription factors such as rotund (rn) and squeeze (sqz). Acts as a coactivator of sqz and is required to limit the number of neurons that express the LIM-homeodomain gene apterous and to specify Tv neuronal fate. Acts as corepressor of rn in wing development and is required to limit the expression of wingless (wg) in the wing hinge, where wg plays a mitogenic role. Interacts with sqz and rn. Able to bind mammalian EGR1 but not Drosophila EGR-like protein klu. Expressed exclusively in a subset of neuroblasts in the embryonic and larval central nervous system (CNS), as well as in several larval imaginal disk tissues. Co-expressed with sqz in a subset of neurons in the embryonic ventral nerve cord and with rn in a circular domain of the distal-most area of the wing disk. Regulated by vestigial (vg) in the wing. The NAB conserved domain 2 (NCD2) is necessary for transcriptional repression. Larval locomotion defects and early larval lethality (L1-L2). In the CNS, axon outgrowth/guidance and glial development appear normal; however, a subset of eve(+) neurons forms in reduced numbers. Belongs to the NAB family. Extended N-terminus.