Previous studies suggest that the conjugation of ubiquitin to NH2 groups of proteins is required for protein breakdown. We now show that the selective modification of NH2-terminal a-NH2 groups of globin and lysozyme prevents their degradation by the ubiquitin proteolytic system from reticulocytes. The conjugation by ubiquitin of e-NH2 groups of lysine residues, usually seen in multiples, was also inhibited in a-NH2-blocked proteins. Naturally occurring N-acetylated proteins are not degraded by the ubiquitin system at a significant rate, while their nonacetylated counterparts from other species are good substrates. This suggests that one function of N'-acetylation of cellular proteins is to prevent their degradation by the ubiquitin system. a-NH2-blocked proteins can have their activity as substrates for degradation increased by incorporation of a-NH2 groups through the introduction of polyalanine side chains. Proteins in which most e-NH2 groups are blocked but the a-NH2 group is free are degraded by the ubiquitin system, but at a reduced rate. It is therefore suggested *that the exposure of a free NH2 terminus of proteins is required for degradation and probably initiates the formation of ubiquitin conjugates committed for degradation.Studies on the mode of action of an ATP-dependent proteolytic system from reticulocytes revealed a pathway for the degradation of intracellular proteins (for reviews see refs. 1 and 2). That system requires for activity the 8500-dalton polypeptide ubiquitin (Ub) (3, 4). Ub is covalently conjugated to proteins (5) by a sequence of reactions in which the COOH-terminal residue of the polypeptide is first activated by a specific Ub-activating enzyme, E1 (6, 7), and activated Ub is transferred to protein by the action of two further enzymes, E2 and E3 (8). The structure of Ub-protein conjugates has not yet been characterized sufficiently, but at least some Ub molecules bind to E-NH2 groups of lysine residues by isopeptide linkages (5,9). Proteins conjugated to multiple molecules of Ub are degraded by an ATP-dependent enzyme system that does not degrade unconjugated proteins (10). The metabolic function of the Ub proteolytic system was strongly supported by a recent study in which a mammalian cell line found to have a temperature-sensitive Ub-activating enzyme was found to be defective in degrading most of its rapidly turning over protein (11).A central problem is what features of protein structure are recognized by the Ub conjugation system for commitment to proteolysis. Since most lysine residues are exposed at the surface of most proteins, the availability of any lysine does not seem to be sufficient for specific recognition. One approach is to study the influence of the modification of specific amino groups in proteins. Other investigators have used complete blocking of protein amino groups to distinguish between Ub-dependent and Ub-independent proteolytic systems (12, 13), and the requirement for free NH2 groups has been confirmed for the Ub-dependent system. On the other ha...