Differential and density gradient centrifugation techniques have been employed to study the intracellular distribution of phosphodiesterases I and I1 in rat liver, using as specific substrates the p-nitrophenyl esters of thymidine-5'-phosphate and thymidine-3'-phosphate. Some of the results for phosphodiesterase I were also examined with the use of a 5'-terminated DNA core as substrate.Phosphodiesterase I was found to be largely (> 80°/,) localized in the plasma membrane, whereas purified nuclei, rough microsomes, and the inner mitochondria1 membrane are essentially free of this enzyme. The possible sources of apparent phosphodiesterase I activity of the outer mitochondrial membrane, the lysosomes and the smooth microsomal membrane are discussed.Phosphodiesterase I1 is localized largely in the soluble fraction of the lysosomes, and exhibits the latency typical of lysosomal hydrolases. The overall findings are examined in relation to those of other investigators. Possible reservations regarding the absolute specificities of the substrates employed, and their bearing on the localization results, are discussed.The delineation of the specificities of phosphodiesterases I and I1 [1,2], and the preparation o f relatively specific and convenient substrates for the assay of these enzymes [3-61, has paved the way for studies on their intracellular distribution [S].With p-nitrophenyl thymidine-5'-phosphate as substrate, Razzell [7] first demonstrated the localization of phosphodiesterase I largely in the microsomal fraction of rat liver. Subsequently deLamirande et al. [8,9] reported the presence of bhe enzyme in the nuclei and the microsomal membranes, and the absence of any activity in the ribosomes. The microsoma1 localization of phosphodiesterase I was subsequently supported by Brightwell and Tappel [lo]. On the other hand, cytochemical investigations on phosphodiesterase I localization in rat liver, with the aid of cc-napht*hyl thymidine-5'-phosphate as substrate, revealed most of the enzyme activity a t the border of the bile canaliculi [4].