Apolipoprotein (apo) E4, a 299-aa protein and a major risk factor for Alzheimer's disease, can be cleaved to generate C-terminaltruncated fragments that cause neurotoxicity in vitro and neurodegeneration and behavioral deficits in transgenic mice. To investigate this neurotoxicity, we expressed apoE4 with C-or N-terminal truncations or mutations in transfected Neuro-2a cells. ApoE4 Alzheimer's disease ͉ mitochondria ͉ proteolysis H uman apolipoprotein (apo) E, a 34-kDa protein with 299 aa, has three major isoforms, apoE2, apoE3, and apoE4 (1-4). ApoE4 is a major risk factor for Alzheimer's disease (AD) (5-7). The apoE4 allele, which is found in 40-65% of cases of sporadic and familial AD, increases the occurrence and lowers the age of onset of the disease (7,8).Biochemical, cell biological, transgenic animal, and human studies have suggested several potential mechanisms to explain the contribution of apoE4 to the pathogenesis of AD. These mechanisms include modulation of the deposition and clearance of amyloid  (A) peptides and the formation of plaques (9 -15), modulation of A-caused synaptic and cholinergic deficits (16), acceleration of age-and excitotoxicity-related neurodegeneration (17), impairment of the antioxidative defense system and mitochondrial function (18 -21), dysregulation of neuronal signaling pathways (22), altered phosphorylation of tau and neurofibrillary tangle formation (23-28), depletion of cytosolic androgen receptor levels in the brain (29, 30), potentiation of A-induced lysosomal leakage and apoptosis in neuronal cells (31), and promotion of endosomal abnormalities linked to A overproduction (32-34). The mechanisms of these apoE4-mediated detrimental effects are largely unknown.We have shown that apoE can be cleaved by a neuronspecific chymotrypsin-like serine protease that generates bioactive C-terminal-truncated forms of apoE (25,27,28). The fragments are found at higher levels in the brains of AD patients than in age-and sex-matched controls (27), and apoE4 is more susceptible to cleavage than apoE3. When expressed in cultured neuronal cells or added exogenously to the cultures, apoE4 fragments are neurotoxic, leading to cell death (25). When expressed in transgenic mice, they cause AD-like neurodegeneration and behavioral deficits (27). Because apoE is synthesized by neurons under diverse pathophysiological conditions (35-49), we hypothesize that apoE4 produced in neurons in response to stress or injury (e.g., A toxicity, brain trauma, or oxidative stress) is uniquely susceptible to proteolytic cleavage and that the resulting bioactive C-terminaltruncated fragments induce neuropathology and associated behavioral deficits. ApoE3 also undergoes proteolytic cleavage but to a lesser extent.In this study, we investigated the cellular and molecular mechanisms of the neurotoxicity caused by apoE4 fragments in cultured neuronal cells. We also evaluated the roles of various regions [specifically, the receptor-binding region (amino acids 135-150) and the lipid-binding region (amino acid...