CD38, a type II transmembrane glycoprotein widely expressed in mammalian cells, is both a receptor/co-receptor initiating signal-transducing processes and also a multifunctional enzyme (1-3). Its known enzyme activities are synthesis from NAD ϩ of nicotinamide and of the potent calcium mobilizer cyclic ADP-ribose (cADPR) 1 (ADP-ribosyl cyclase) and degradation of cADPR to ADP-ribose (cADPR hydrolase); in addition, CD38 has been demonstrated to catalyze a number of baseexchange reactions that include conversion of NADP ϩ , in specific conditions and in the presence of nicotinic acid, to an additional calcium mobilizer, i.e. NAADP ϩ (4, 5). Since the discovery of its role in cADPR metabolism, it soon became clear that CD38 is an ectoenzyme (6 -11). This property raised a number of obvious questions on: (i) how the cyclase substrate NAD ϩ can become accessible to the catalytic site of CD38 at the outer surface of many cells, and (ii) even assuming ectocellular cADPR generation, how the CD38 product cADPR can reach the intracellular ryanodine-sensitive channels from which it releases calcium into the cytosol (12-15). The latter question was also supported by failure to identify any functional effect of cADPR other than its intracellular calcium releasing activity.Similar topological questions arose for that fraction of CD38 which is localized to intracellular membrane vesicles. These mediate the export of "de novo" synthesized CD38 to the plasma membrane (16) and also the opposite process of CD38 endocytosis that is observed upon incubating several cells types with specific ligands, e.g. 18). In both cases, the active site of CD38 is intravesicular and therefore unavailable to cytosolic NAD ϩ . Moreover, any intravesicularly generated cADPR would be sequestered inside the vesicles and therefore be unable to target the ryanodine-sensitive calcium stores.This "topological paradox" of the CD38/cADPR system appeared to be challenging, in view of the powerful calcium releasing activity of cADPR and of the remarkably increased cytosolic calcium ([Ca 2ϩ ] i ) levels (and consequent triggering of calcium-stimulated cell functions) that are observed during both de novo expression of CD38 (16) and its ligand-induced internalization (18). Both findings clearly indicated, in the absence of obvious underlying mechanisms, that intracellularly localized CD38 (e.g. vesicle-bound) can in fact convert cytosolic NAD ϩ to cADPR and that the cyclic nucleotide is functionally active as it can have accessibility to the calcium stores from which it up-modulates calcium release (19).Recently, three different transporters for NAD ϩ and cADPR have been identified, which have elucidated the topological