Annexin 2 phosphorylated in vitro by protein kinase C has been shown to restore partially catecholamine secretion in streptolysin 0-permeabilized chromaffin cells depleted of their protein kinase C activity. This result suggested a phosphorylation of annexin 2 in stimulated cells. Nicotine stimulation induced an increase of 32p incorporation in annexin 2 heavy chain concomitant with catecholamine release. This incorporation results from phosphorylation by protein kinase C because (a) serin.e was the only phosphorylated residue, (b) 32P incorporation was inhibited by the protein kinase inhibitors H7, GF 1 09203X, and staurosporine, and (c) activators of this enzyme, 1 2-O-tetradecanoylphorbol 13-acetate and 1,2-dioctanoylglycerate, increased the incorporation of radioactivity. The phosphorylated heavy chain had an electrophoretic mobility lower than that of the unmodified one, thus allowing determination of the fraction of phosphorylated protein. In the resting state, a significant fraction of annexin 2 heavy chain was phosphorylated, and nicotine stimulation resulted in an activation of both phosphorylation and dephosphorylation. Phosphorylation was largely increased in the presence of okadaic acid, indicating the involvement of type 1 and 2A phosphatases. Key Words: Annexin-Protein kinase C-Phosphorylation-Chromaffin cells-Secretion. J. Neurochem. 68, 1720-1727 (1997).Adrenal chromaffin cells, which secrete catecholamines on stimulation by acetylcholine, have served as a good model for the study of the molecular mechanisms involved in regulated exocytosis. Primary cultures of chromaffln cells have allowed the study of stimulation by acetylcholine of catecholamine secretion and the characterization of factors essential for secretion (Fenwick et al., 1978;Kilpatrick et al., 1980). Along this line, Michener et al. (1986) and Creutz et a!. (1987) demonstrated the phosphorylation of two phospholipid and calcium binding proteins, chromobindins 8 and 9, when chromaffin cells were preincubated with 32P0 4 3 and stimulated by nicotine. These chromobindins were identified as annexins 1 and 2. Annexin 2 differs from the other annexins in being a heterotetramer composed of two 36-kDa heavy chains and two I l-kDa light chains or a monomer with one 36-kDa heavy chain. Only the heterotetramer is able to bind chromaffin granules, to promote their aggregation at a physiological calcium concentration of 5 ,uM, and, at pH 6, to induce the fusion of granules after addition of arachidonic acid (Drust and Creutz, 1988). The heavy chain of annexin 2 is phosphorylated by various protein kinases, and it is the major substrate for protein kinase C and for the Rous sarcoma virus enzyme pp60~"°. In human cells treated with epiderma! growth factor and platelet-derived growth factor, annexin 2 is phosphorylated on a tyrosine as well as on a serine (Isacke et a!., 1986). The serine residue was identified as Ser25 within the amino-terminal region (Glenney and Tack, 1985). Alternatively, in vitro phosphorylations of annexin 2 with ca...