Bluetongue virus (BTV) 1 is a member of the Orbivirus genus within the Reoviridae family of segmented double-stranded RNA viruses. BTV remains an agriculturally important veterinary pathogen transmitted primarily to sheep by biting midges. BTV encodes seven structural (VP1-7) and four nonstructural (NS1, NS2, NS3, and NS3A) proteins. NS3 is a 229-amino acid protein encoded by the viral S10 RNA segment, and NS3A is a 216-amino acid protein in which synthesis is initiated from an in-frame downstream AUG codon within the Ser-10 RNA segment (1, 2). Both proteins have been shown to be N-linked glycosylated and associated with lipid membranes in infected cells (2-5). Hyatt et al. (3,6,7) were the first to provide evidence that NS3/NS3A may be involved in the late stages of BTV assembly and that NS3/NS3A were required for efficient release of virus-like particles from BTV-infected cells. For example, electron microscopic studies suggested that NS3 was associated with areas of plasma membrane perturbation (3). Similar findings have been reported for the NS3 protein encoded by the closely related African horse sickness virus (5, 8, 9). More recently, an elegant study by Beaton et al. (10) demonstrated that NS3 of BTV facilitates virus release by interacting with specific host-trafficking proteins at the plasma membrane. The authors suggest that NS3 functions as a bridge, linking progeny virions with cellular export machinery to promote virus release (10). Thus, NS3 appears to play a key role in virus assembly and release. We were initially intrigued by the presence of conserved PPXY and PSAP motifs within NS3 that are identical in sequence to late budding domains (L-domains) that we and others have identified in matrix proteins of RNA viruses (11). These L-domains have been shown to interact with specific host proteins, and the resultant virus-host interactions are thought to facilitate virus budding by an, as yet, undetermined mechanism. Results from our initial experiments indicated that the PPXY and PSAP motifs of NS3 did not appear to function as typical L-domains, in that these motifs did not promote the release of NS3-containing virus-like particles from mammalian cells. Interestingly, we did find that cells expressing NS3 were permeable to the translational inhibitor hygromycin B in a dose-dependent manner. This finding suggested that NS3 may be capable of permeabilizing or destabilizing lipid membranes; a property shared by a group of viral proteins termed viroporins (12). We went on to demonstrate that NS3 possesses additional characteristics commonly associated with viroporins. For example, NS3 was able to form homo-oligomers when expressed in mammalian cells. Furthermore, like other viroporins, NS3 is a transmembrane protein containing two transmembrane domains (TM1 and TM2). Mutations introduced into TM1 to disrupt the hydrophobic nature of this region abolished the ability of NS3 to permeabilize the plasma membrane. In contrast, the deletion of amino acids comprising TM2 did not result in disruption of NS3-i...