Expression is reduced 50 to 100 fold, and four transcripts (instead of one in Sgs4) are produced. DNAase-hypersensitive sites are still present in the region 5' to Sgs4, including additional sites that from within the hobo insertion. Insertion of 1.3kb hobo transposable element 33bp upstream of the Sgs4 structural gene, just upstream of the Sgs4 TATA box.