The core protein of pestiviruses is released from the polyprotein by viral and cellular proteinases. Here we report on an additional intramembrane proteolytic step that generates the C terminus of the core protein. C-terminal processing of the core protein of classical swine fever virus (CSFV) was blocked by the inhibitor (Z-LL) 2 -ketone, which is specific for signal peptide peptidase (SPP). The same effect was obtained by overexpression of the dominant-negative SPP D 265 A mutant. The presence of (Z-LL) 2 -ketone reduced the viability of CSFV almost 100-fold in a concentration-dependent manner. Reduction of virus viability was also observed in infection experiments using a cell line that inducibly expressed SPP D 265 A. The position of SPP cleavage was determined by C-terminal sequencing of core protein purified from virions. The C terminus of CSFV core protein is alanine 255 and is located in the hydrophobic center of the signal peptide. The intramembrane generation of the C terminus of the CSFV core protein is almost identical to the processing scheme of the core protein of hepatitis C viruses.Pestiviruses are small, enveloped RNA viruses that account for important diseases in farm animals, e.g., classical swine fever (also known as hog cholera) and bovine viral diarrhea. Pestiviruses constitute one genus within the Flaviviridae and contain a message sense RNA of about 12.3 kilobases. The genome is translated into a single polyprotein that is processed by cellular and viral proteases into 12 mature proteins. The virion consists of four structural proteins, the core protein and the glycoproteins E rns , E1, and E2 (19). The core protein of all members of the Flaviviridae is a small protein rich in basic amino acids and locates at or near the N terminus of the polyprotein (11). In the pestivirus polyprotein, the core protein is located between the N-terminal protease N pro and the glycoprotein E rns . N pro generates the N terminus (Ser 169 ) of the core protein by autocatalytic cleavage of the polyprotein (15, 18). Core protein is followed by E rns , whose N terminus (Asp 268 ) is generated by signal peptidase (signalase, or SP) (16).Two different mechanisms of release of core protein from the polyprotein have been described for members of the Flaviviridae. Members of the genus Flavivirus (e.g., yellow fever virus [YFV]) employ the virally encoded NS2B-3 protease to generate the C terminus of core protein. The NS2B-3 protease of YFV cleaves the core protein precursor at a tribasic consensus sequence at the N terminus of the preM signal peptide (1). For hepatitis C virus (HCV), signal peptide peptidase (SPP) was recently determined to cleave within the C-terminal domain of core protein (7). Thus far, three different C termini have been proposed for HCV core protein. N-terminal sequencing of HCV core-dihydrofolate reductase fusion proteins revealed cleavage after Leu 179 or Leu 182 (4). In a recent report, Phe 177 was identified as the C terminus of HCV core protein by using matrix-assisted laser desorption ion...