Protein arginine N-methyltransferases have been implicated in a variety of processes, including cell proliferation, signal transduction, and protein trafficking. In this study, we have characterized essentially a null mutation induced by insertion of the U3Geo gene trap retrovirus into the second intron of the mouse protein arginine N-methyltransferase 1 gene (Prmt1). cDNAs encoding two forms of Prmt1 were characterized, and the predicted protein sequences were found to be highly conserved among vertebrates. Expression of the Prmt1-geo fusion gene was greatest along the midline of the neural plate and in the forming head fold from embryonic day 7.5 (E7.5) to E8.5 and in the developing central nervous system from E8.5 to E13.5. Homozygous mutant embryos failed to develop beyond E6.5, a phenotype consistent with a fundamental role in cellular metabolism. However, Prmt1 was not required for cell viability, as the protein was not detected in embryonic stem (ES) cell lines established from mutant blastocysts. Low levels of Prmt1 transcripts (approximately 1% of the wild-type level) were detected as assessed by a quantitative reverse transcription-PCR assay. Total levels of arginine N-methyltransferase activity and asymmetric N G ,N G -dimethylarginine were reduced by 85 and 54%, respectively, while levels of hypomethylated substrates were increased 15-fold. Prmt1 appears to be a major type I enzyme in ES cells, and in wild-type cells, most substrates of the enzyme appear to be maintained in a fully methylated state.Methylation of arginine residues is one of many covalent modifications of eukaryotic proteins that occur concomitant with or shortly following translation. Two types of protein arginine methyltransferases have been classified according to their substrate specificity and reaction products (reviewed in reference 11). Type I enzymes catalyze the formation of N G -monomethylarginine and asymmetric N G ,N G -dimethylarginine, while type II enzymes catalyze the formation of N Gmonomethylarginine and symmetric N G ,NЈ G -dimethylarginine. Most substrates for type I enzymes bind nucleic acid, usually RNA. These include heterogeneous nuclear RNA binding proteins (hnRNPs), which collectively contain 65% of the nuclear asymmetric dimethylarginine, as well as fibrillarin and nucleolin (19-21). The only known physiological substrate of symmetric (type II) arginine methyltransferase is myelin basic protein, a major protein component of the myelin sheath.Genes encoding rat (PRMT1), human (HRMT1L2), and yeast (RMT1) type I enzymes have been characterized (12,13,17,29). The mammalian genes appear to be ubiquitously expressed in all tissues (17, 29, 32). The yeast enzyme, which is not required for cell viability, accounts for over 85% of the protein dimethylarginine in the cell (12).Type I enzymes have been implicated in a variety of processes, including cell growth control, signal transduction, and protein trafficking, but the biochemical and biological functions of arginine methylation have not been established. The enz...