Malonamidase E2 (MAE2) from Bradyrhizobium japonicum is an enzyme that hydrolyzes malonamate to malonate and has a Ser-cis-Ser-Lys catalytic triad at the active site. The crystal structures of wild type and mutant MAE2 exhibited that the guanido group of Arg-158 could be involved in the binding of malonamate in which the negative charge of the carboxyl group could destabilize a negatively charged transition-state oxyanion in the enzymatic reaction. In an attempt to elucidate the specific roles of Arg-158, site-directed mutants, R158Q, R158E, and R158K, were prepared (see Table 1). The crystal structure of R158Q determined at 2.2 Å resolution showed that the guanido group of Arg-158 was important for the substrate binding with the marginal structural change upon the mutation. The k cat value of R158Q significantly decreased by over 1500-fold and the catalytic activity of R158E could not be detected. The k cat value of R158K was similar to that of the wild type with the K m value drastically increased by 100-fold, suggesting that Lys-158 of R158K can stabilize the negative charge of the carboxylate in the substrate to some extent and contribute to the stabilization of the transition-state oxyanion, but a single amine group of Lys-158 in R158K could not precisely anchor the carboxyl group of malonamate compared with the guanido group of Arg-158. Our kinetic and structural evidences demonstrate that Arg-158 in MAE2 should be critical to both binding the substrate and stabilizing the transition-state oxyanion for the catalytic reaction of MAE2.Serine-nucleophile hydrolase is one of the most widespread enzymes in biological system and includes proteases, esterases, and lipases of which the catalytic triads or dyads play a critical role in the enzymatic catalysis (1). In most cases, enzymatic hydrolysis involves the nucleophilic attack on the electrophilic carbonyl carbon in the substrate, resulting in the formation of an oxyanion. The oxyanion can be recognized and stabilized by the oxyanion hole for the rate enhancement of the enzymatic reaction (2). Consequently, the stabilization of the transition-state oxyanion is very important for the efficient catalysis in the serine-nucleophile hydrolase.An enzyme family, designated as amidase signature (AS) 2 enzymes, utilizes a novel Ser-cis-Ser-Lys catalytic triad that is distinctly different from the classical catalytic triad or its variant (3-5). The unique nomenclature of AS is attributed to the AS sequence including the conserved sequence of about 130 amino acids rich in glycine and serine (Fig. 1A) (6, 7). The AS enzyme family includes over 200 different enzymes in many different organisms. The major role of AS enzymes has been known to be the hydrolysis of the amide bond. The enzymatic reactions of AS enzymes are involved in many critical biological functions such as the catabolism of neuromodulatory fatty acid amide by fatty acid amide hydrolase (8 -11), the formation of Gln-tRNA Gln by aminotransferase (12, 13), the formation of indole-3-acetic acid, which plays a r...