Presenilin-1 (PS1) has gained intensive attention in relation to Alzheimer’s disease, since it has been shown that PS1 mutations are linked to familial Alzheimer’s disease (FAD), and that PS1 is a member of the high molecular weight complex of γ-secretase, which generates the carboxyl end of β-amyloid peptide (γ-cleavage). A parallel line of evidence suggests that upon formation of cell-cell contacts, presenilin colocalizes with cadherins at the cell surface and stabilizes the cadherin-based adhesion complex. Under conditions stimulating cell-cell dissociation, cadherins are processed by a PS1/γ-secretase activity, promoting disassembly of adherens junctions, and resulting in the increase of cytosolic β-catenin, which is an important regulator of the Wnt/Wingless signaling pathway. PS1 also controls the cleavage of a number of transmembrane proteins at the interface of their transmembrane and cytosolic domains (Ε-cleavage), producing intracellular fragments with a putative transcriptional role. Remarkably, cleavage of N-cadherin by PS1 produces an intracellular fragment that downregulates CREB-mediated transcription, indicating a role of PS1 in gene expression. PS1 mutations associated with FAD abolish production of the N-cadherin intracellular fragment and thus fail to suppress CREB-dependent transcription. These findings suggest an alternative explanation for FAD that is separate from the widely accepted ‘amyloid hypothesis’: dysfunction in transcription regulatory mechanisms.