Members of the M13 family of zinc metalloendopeptidases have been shown to play critical roles in the metabolism of various neuropeptides and peptide hormones, and they have been identified as important therapeutic targets. Recently, a mouse NL1 protein, a novel member of the family, was identified and shown to be expressed mainly in the testis as a secreted protein. To define its physiological role(s), we used a gene targeting strategy to disrupt the endogenous murine Nl1 gene by homologous recombination and generate Nl1 mutant mice. The Nl1 ؊/؊ mice were viable and developed normally, suggesting that zygotic expression of Nl1 is not required for development. However, Nl1؊/؊ males produced smaller litters than their wild-type siblings, indicating specific male fertility problems. Reduced fertility may be explained by two impaired processes, decreased egg fertilization and perturbed early development of fertilized eggs. These two phenotypes did not result from gross anatomical modifications of the testis or from impaired spermatogenesis. Basic sperm parameters were also normal. Thus, our findings suggest that one of the roles of NL1 in mice is related to sperm function and that NL1 modulates the processes of fertilization and early embryonic development in vivo.A wide variety of biologically active peptide hormones, neuropeptides, and regulatory peptides are proteolytically activated or inactivated by zinc metalloproteases (58, 59). The M13 family of zinc metalloproteases attracts much interest because its members are involved in the metabolism of several regulatory peptides of the mammalian nervous, cardiovascular, inflammatory, and immune systems as well as in the mineralization process (8,56,57,59). For these reasons, several members of this family of peptidases have been selected as targets for therapeutic intervention by inhibitors or pharmacological agents.NL1 (also called SEP or NEP2) is the newest member of the M13 family of zinc metallopeptidases (19,25,42), which also includes neprilysin (neutral endopeptidase 24.11; also called NEP and CALLA) (reviewed in reference 11), the endothelinconverting enzymes 1 and 2 (ECE-1 and ECE-2) (reviewed in reference 55), PHEX (formerly PEX; a phosphate regulating gene with homologies to endopeptidases on the X chromosome) (reviewed in reference 54), the Kell blood group protein (reviewed in reference 35), and ECEL1/DINE (endothelinconverting enzyme-like 1/damage-induced neuronal endopeptidase) (29, 60, 61). Nl1 cDNA was simultaneously cloned by reverse transcription-PCR technology with degenerate oligonucleotide primers based on conserved sequence similarity between members of the family and mRNA isolated from mouse and rat testis or from Ece-1 Ϫ/Ϫ embryos (19,25,42). Finally, a clone coding for a putative human homologue has been obtained from a central nervous system cDNA library (4).As observed for other members of the M13 family of peptidases, the Nl1 cDNA encodes a type II transmembrane glycoprotein encompassing a short N-terminal cytoplasmic tail, a single tran...