Co-expression of membrane-type 1 (MT1)-MMP with hepatocyte growth factor activator inhibitor-1 (HAI-1) in HEK293T cells resulted in cleavage of HAI-1 to produce three fragments. Recombinant MT1-MMP was shown to cleave HAI-1 protein in vitro. Hepatocyte growth factor activator inhibitor-1 was initially identified as the cognate inhibitor of matriptase, a transmembrane serine protease that processes urokinase-type plasminogen activator (uPA). Co-expression of HAI-1 with matriptase suppressed matriptase protease activity, and co-expression of MT1-MMP with them resulted in recovery of matriptase activity by stimulating shedding of HAI-1 fragments. Matriptase protein was detected in squamous carcinoma-derived HSC-4 cells, however, matriptase protease activity was undetectable. Transfection of siRNA for HAI-1 enhanced serine protease activity, which was suppressed by cotransfection of matriptase siRNA. Collagen-gel culture or treatment with concanavalin A (ConA) of HSC-4 cells enhanced MT1-MMP activity, which induced shedding of HAI-1 fragments and conversely stimulated uPA activation by these cells. Serine protease activity, including uPA activation of cells treated with ConA, was abrogated by downregulation of either matriptase or MT1-MMP through the transfection of each siRNA. These results suggest that MT1-MMP induced by collagen-gel culture or ConA treatment causes cleavage and shedding of HAI-1 protein, which allows activation of matriptase in HSC-4 cells. HSC-4 cells showed a characteristic invasive growth by forming vacuole-like structures in collagen gel, which was suppressed by transfection of siRNA for either MT1-MMP or matriptase, suggesting that activation of matriptase through the cleavage of HAI-1 is one of the MT1-MMP multifunctions essential for invasive growth of HSC-4 cells. (Cancer Sci 2012; 103: 448-454) H epatocyte growth factor activator inhibitor-1 is a membrane-associated Kunitz-type serine protease inhibitor. (1)(2)(3)(4)(5) It was initially identified as the cognate inhibitor of HGFA, (6) and purified from human milk as a complex with matriptase, a multidomain, transmembrane serine protease of the S1 trypsinlike family.(7-11) Matriptase was detected in a variety of human tumors of epithelial origin or phenotype and has been implicated in the initiation and progression of human carcinomas. (12)(13)(14) Matriptase mediates the degradation of ECM components and activates growth and angiogenic factors, which not only facilitates cellular invasiveness but may also activate oncogenic pathways. These functions are partially attributed to its role in the activation of HGF and uPA.(15-17) Both HGF and uPA have been implicated in cancer invasion and metastasis for their roles in cellular motility, ECM degradation, and tumor vascularization.(1,18) The HAI-1 fragments are often identified in culture supernatant of cells in complex with proteases, suggesting that proteolytic processing of HAI-1 may play roles in regulation of inhibitory activity. (19,20) However, the molecular mechanism of HAI-1 shedd...