The car gene cluster of the ascomycete Fusarium fujikuroi encodes two enzymes responsible for torulene biosynthesis (CarRA and CarB), an opsin-like protein (CarO), and a putative carotenoid cleaving enzyme (CarX). It was presumed that CarX catalyzes the formation of the major carotenoid in F. fujikuroi, neurosporaxanthin, a cleavage product of torulene. However, targeted deletion of carX did not impede neurosporaxanthin biosynthesis. On the contrary, ⌬carX mutants showed a significant increase in the total carotenoid content, indicating an involvement of CarX in the regulation of the pathway. In this work, we investigated the enzymatic activity of CarX. The expression of the enzyme in -carotene-accumulating Escherichia coli cells led to the formation of the opsin chromophore retinal. The identity of the product was proven by high-performance liquid chromatography and gas chromatography-mass spectrometry. Subsequent in vitro assays with heterologously expressed and purified CarX confirmed its -carotene-cleaving activity and revealed its capability to produce retinal also from other substrates, such as ␥-carotene, torulene, and -apo-8-carotenal. Our data indicate that the occurrence of at least one -ionone ring in the substrate is required for the cleavage reaction and that the cleavage site is determined by the distance to the -ionone ring. CarX represents the first retinal-synthesizing enzyme reported in the fungal kingdom so far. It seems likely that the formed retinal is involved in the regulation of the carotenoid biosynthetic pathway via a negative feedback mechanism.Carotenoids are widespread lipophilic pigments synthesized by all photosynthetic organisms and some nonphotosynthetic fungi and bacteria. These yellow, orange, and red isoprenoid compounds fulfill diverse functions in all taxa. In addition, carotenoids are the precursors of several physiologically essential compounds, like the ubiquitous chromophore retinal, the phytohormone abscisic acid (ABA), and the fungal sex hormone trisporic acid.The synthesis of these carotenoid cleavage products, known as apocarotenoids, is catalyzed in general by carotenoid oxygenases, which constitute a new nonheme iron enzyme family common in all taxa (for reviews, see references 1, 11, 15, and 24). Recently, the crystal structure of a member of this family, the Synechocystis apocarotenoid oxygenase, was elucidated at 2.4-Å resolution. The enzyme contains an Fe 2ϩ -4-His arrangement at the axis of a seven-bladed -propeller chain fold covered by a dome formed by six large loops (20). It has also been shown that the 15,15Ј BCO I (-carotene oxygenase I) acts as a monooxygenase (21). However, recent investigations of AtCCD1 (Arabidopsis thaliana carotenoid cleavage dioxygenase 1) suggested a dioxygenase mechanism (31).VP14 (Viviparous 14), a maize enzyme mediating the oxidative cleavage of 9-cis-violaxanthin and 9Ј-cis-neoxanthin to form the precursor of ABA, xanthoxin, was the first molecularly identified carotenoid oxygenase (34). Data from sequenced genomes hav...