Numerous mutations causing early onset Alzheimer's disease have been identified in the presenilin (PS) genes, particularly the PS1 gene. Like the mutations identified within the -amyloid precursor protein gene, PS mutations cause the increased generation of a highly neurotoxic variant of amyloid -peptide. PS proteins are proteolytically processed to an N-terminal ϳ30-kDa (NTF) and a C-terminal ϳ20-kDa fragment (CTF 20 ) that form a heterodimeric complex. We demonstrate that this complex is resistant to proteolytic degradation, whereas the full-length precursor is rapidly degraded. Degradation of the PS1 holoprotein is sensitive to inhibitors of the proteasome. Formation of a heterodimeric complex is required for the stability of both PS1 fragments, since fragments that do not co-immunoprecipitate with the PS complex are rapidly degraded by the proteasome. Mutant PS fragments not incorporated into the heterodimeric complex lose their pathological activity in abnormal amyloid -peptide generation even after inhibition of their proteolytic degradation. The PS1 heterodimeric complex can be attacked by proteinases of the caspase superfamily that generate an ϳ10-kDa proteolytic fragment (CTF 10 ) from CTF 20 . CTF 10 is rapidly degraded most likely by a calpain-like cysteine proteinase. From these data we conclude that PS1 metabolism is highly controlled by multiple proteolytic activities indicating that subtle changes in fragment generation/ degradation might be important for Alzheimer's diseaseassociated pathology.Alzheimer's disease (AD) 1 is the most common dementia worldwide. A pathological hallmark of AD is the invariant accumulation of numerous senile plaques in certain areas of the brain. Senile plaques are composed of the amyloid -peptide (A), a proteolytic derivative of the -amyloid precursor protein (APP; see Ref. 1). In the majority of cases, AD occurs as a sporadic disease with an increasing risk during aging (2). However, in about 10 -15% of the cases AD is caused by autosomal dominant mutations within three genes (2). A very limited set of families was identified carrying mutations in the APP gene (2). These mutations occur at, or close to, the cleavage sites of the APP-processing enzymes, the secretases (1). All APP mutations analyzed so far cause an enhanced production of A, specifically the highly pathogenic 42-amino acid variant, A42 (2).By far the highest number of FAD-associated mutations were identified within the PS gene (see Ref. 3 and for review see Ref. 4). Two mutations were also observed in the highly homologous PS2 gene (5, 6). PS proteins are integral membrane proteins, which form 6 to 8 trans-membrane domains with the N-terminal domain, the large loop, and the C-terminal domain located within the cytoplasm (7,8). Both PS proteins are predominantly expressed within the endoplasmic reticulum, the nuclear envelope, and the early Golgi (7, 9 -12).Like APP mutations, mutant PS proteins are involved in aberrant A generation. All PS1 and PS2 mutations analyzed so far affect the ...