The potent sphingolipid metabolite sphingosine 1-phosphate is produced by phosphorylation of sphingosine catalyzed by sphingosine kinase (SphK) types 1 and 2. In contrast to pro-survival SphK1, the putative BH3-only protein SphK2 inhibits cell growth and enhances apoptosis. Here we show that SphK2 catalytic activity also contributes to its ability to induce apoptosis. Overexpressed SphK2 also increased cytosolic free calcium induced by serum starvation. Transfer of calcium to mitochondria was required for SphK2-induced apoptosis, as cell death and cytochrome c release was abrogated by inhibition of the mitochondrial Ca 2؉ transporter. Serum starvation increased the proportion of SphK2 in the endoplasmic reticulum and targeting SphK1 to the endoplasmic reticulum converted it from anti-apoptotic to pro-apoptotic. Overexpression of SphK2 increased incorporation of [ 3 H]palmitate, a substrate for both serine palmitoyltransferase and ceramide synthase, into C16-ceramide, whereas SphK1 decreased it. Electrospray ionizationmass spectrometry/mass spectrometry also revealed an opposite effect on ceramide mass levels. Importantly, specific down-regulation of SphK2 reduced conversion of sphingosine to ceramide in the recycling pathway and conversely, down-regulation of SphK1 increased it. Our results demonstrate that SphK1 and SphK2 have opposing roles in the regulation of ceramide biosynthesis and suggest that the location of sphingosine 1-phosphate production dictates its functions.The sphingolipid metabolite, sphingosine 1-phosphate (S1P), 3 a ligand for a family of five specific G protein-coupled receptors, and regulates many important cellular processes including growth, survival, differentiation, cytoskeleton rearrangements, motility, angiogenesis, and immunity (reviewed in Refs. 1-3). Although there is no doubt that S1P acts extracellularly, several studies suggest that this potent lipid, like its precursors sphingosine (4) and ceramide (N-acylsphingosine) (5-7), may also have intracellular functions important for calcium homeostasis (8), cell growth (9, 10), and suppression of apoptosis (11)(12)(13)(14).Like other lipid mediators, S1P levels are tightly regulated by the balance between synthesis, catalyzed by sphingosine kinase (SphK), irreversible cleavage by S1P lyase, and reversible dephosphorylation to sphingosine by specific S1P phosphatases. Two distinct SphK isoforms, SphK1 and SphK2, have been cloned and characterized (15,16). Diverse external stimuli, particularly growth and survival factors, stimulate SphK1 and intracellularly generated S1P has been implicated in their mitogenic and anti-apoptotic effects (10,13,(17)(18)(19)(20)(21)(22)(23)(24). Expression of SphK1 enhanced proliferation and growth in soft agar, promoted the G 1 -S transition, protected cells from apoptosis (10,14,17), and induced tumor formation in mice (17, 18). However, although SphK1 and intracellularly generated S1P can signal "inside-out" to regulate cytoskeletal rearrangements and cell movement, remarkably, cell growth stimulation...