alInhibitor3 (ai13) is a monomeric protease inhibitor of about 190 kDa which is secreted by rodent hepatocytes. We have studied intracellular modifications of this protein in [35S]methionine-labelled rat hepatocytes by pulse/ chase experiments followed by immunoprecipitation and gel electrophoresis under reducing and nonreducing conditions. Directly after the pulse, most of the unreduced a113 migrated faster than the reduced form, indicating that disulphide bridges are formed during or shortly after synthesis yielding a compact structure. With increasing chase time however, an increasing portion of the unreduced al13 migrated with a mobility lower than that of the reduced protein, half-maximal conversion occurring after about 10 min. This finding suggests that a113 undergoes a conformational change in the endoplasmic reticulum, possibly becoming more elongated. During 10 -30 min of chase, the protein acquired the capacity to undergo autolytic cleavage upon heating, a property due to the existence of an internal thiolester bond [Howard, J. B., Vermeulen Analysis by subcellular fractionation indicated that this bond is formed in the endoplasmic reticulum. Finally, we show that secreted al13 is sulphated, presumably at Tyr618.After synthesis by ribosomes attached to the endoplasmic reticulum, secretory proteins pass through the Golgi complex before being released into the medium. The Golgi complex has been shown to consist of at least three functionally different compartments (the cis, medial and trans-Golgi) through which the secretory proteins pass in succession (reviewed by Pfeffer and Rothman, 1987). Most secretory proteins are modified during their transport. The various enzymes catalysing these modifications occur in specific compartments. Therefore, the modifications and the corresponding enzyme activities may be used for the analysis of the secretory pathway. The best characterised modifications are those entailing the acquisition of covalently linked groups, such as oligosaccharides (for a review see Kornfeld and Kornfeld, 1985). It is becoming increasingly clear, however, that many secretory proteins also undergo conformational changes before their release, particularly in the endoplasmic reticulum (reviewed by Hurtley and Helenius, 1989). The molecular mechanisms underlying these processes are poorly understood.We are using isolated rat hepatocytes to study protein secretion. alInhibitor3 (a113) is one of the proteins synthesised at the highest rates in these cells. a113, also called murinoglobulin, is a rodent-specific protease inhibitor of Correspondence to M. Sjoberg,