The Alzheimer's amyloid protein (A) is released from the larger amyloid -protein precursor (APP) by unidentified enzymes referred to as -and ␥-secretase. -Secretase cleaves APP on the amino side of A producing a large secreted derivative (sAPP) and an A-bearing C-terminal derivative that is subsequently cleaved by ␥-secretase to release A. Alternative cleavage of the APP by ␣-secretase at A16/17 releases the secreted derivative sAPP␣. In yeast, ␣-secretase activity has been attributed to glycosylphosphatidylinositol (GPI)-anchored aspartyl proteases. To examine the role of GPIanchored proteins, we specifically removed these proteins from the surface of mammalian cells using phosphatidylinositol-specific phospholipase C (PI-PLC). PI-PLC treatment of fetal guinea pig brain cultures substantially reduced the amount of A40 and A42 in the medium but had no effect on sAPP␣. A mutant CHO cell line (gpi85), which lacks GPI-anchored proteins, secreted lower levels of A40, A42, and sAPP than its parental line (GPI؉). When this parental line was treated with PI-PLC, A40, A42, and sAPP decreased to levels similar to those observed in the mutant line, and the mutant line was resistant to these effects of PI-PLC. These findings provide strong evidence that one or more GPI-anchored proteins play an important role in -secretase activity and A secretion in mammalian cells. The cell-surface GPI-anchored protein(s) involved in A biogenesis may be excellent therapeutic target(s) in Alzheimer's disease.The amyloid that is invariably deposited in Alzheimer's disease (AD) 1 is composed of an approximately 4-kDa peptide (amyloid -peptide, A) that is derived from a larger protein referred to as the amyloid -protein precursor (APP) (1, 2). APP is a type I integral membrane glycoprotein with a large Nterminal extracellular domain, a single transmembrane domain, and a short cytoplasmic tail. The A peptide begins 99 amino acids from the C terminus of APP, and it extends from the extracellular region to a point half-way through the APP membrane-spanning domain (1). A is released from APP by cleavage on its N-and C-terminal ends by -and ␥-secretase, respectively. -Secretase cleavage before residue 1 of A (672 of APP770) also releases the secreted derivative sAPP, whereas an alternative cleavage before residue 17 by ␣-secretase releases sAPP␣. In most culture systems tested, the predominant cleavage product is sAPP␣, and this may serve to prevent the production of A (1). The proteolytic processing of APP to sAPP and A is regulated by protein kinase C (3), protein tyrosine kinase (4), muscarinic receptors (5), and estrogens (6). The regulatory pathways involved are cell type-dependent, have little or no effect in some cell types, and normally stimulate the secretion of sAPP␣ while simultaneously reducing the secretion of A (2). A metalloproteinase related to the tumor necrosis factor-␣ converting enzyme (7,8) can cleave APP to sAPP␣ upon activation of PKC by phorbol esters 2 (9, 10). Strong evidence that A plays...