Escherichia coli RNase T, an RNA-processing enzyme and a member of the DEDD exonuclease superfamily, was examined using sequence analysis and site-directed mutagenesis. Like other DEDD exonucleases, RNase T was found to contain three conserved Exo motifs that included four invariant acidic residues. Mutagenesis of these motifs revealed that they are essential for RNase T activity, indicating that they probably form the RNase T catalytic center in a manner similar to that found in other DEDD exonucleases. We also identified by sequence analysis three short, but highly conserved, sequence segments rich in positively charged residues. Site-directed mutagenesis of these regions indicated that they are involved in substrate binding. Additional analysis revealed that residues within the C-terminal region of RNase T are essential for RNase T dimerization and, consequently, for RNase T activity. These data define the domains necessary for RNase T action, and together with information in the accompanying article, have led to the formulation of a detailed model for the structure and mechanism of action of RNase T.RNase T is one of eight exoribonucleases present in Escherichia coli (1). It belongs to the DEDD exonuclease superfamily, characterized by common motifs containing four invariant acidic residues, which in DNA polymerases were shown to form the exonuclease active site (2). RNase T plays an important role in stable RNA metabolism in E. coli, including tRNA end turnover (3) and 3Ј maturation of many stable RNAs (4 -7). RNase T proteins are closely related to the proofreading domains/ subunits of bacterial DNA polymerases (2, 8), and, interestingly, E. coli RNase T also displays strong DNA exonuclease activity (9, 10).Although the substrates of RNase T in vivo share a common sequence feature consisting of a stable, double-stranded (ds) stem followed by a few unpaired 3Ј nucleotides, RNase T actually is a single-strand-specific exoribonuclease that acts in the 3Ј-to-5Ј direction in a non-processive manner (11). However, whereas other E. coli exoribonucleases stop several nucleotides downstream of an RNA duplex, RNase T can digest RNA up to the first base pair, although it slows as it approaches the duplex structure. The presence of a free 3Ј-hydroxyl group is required for the enzyme to initiate digestion (11).Homogeneous RNase T has been prepared from both normal and overexpressing cells (12, 13). The enzyme forms a homodimer in vitro and in vivo, and formation of the dimer seems to be required for it to function (14). Some residues needed for dimerization have been identified, as well as the importance of hydrophobicity in the dimerization process (13,14).In this study, we investigate in detail structure-function relationships in RNase T using a combination of sequence analysis and site-directed mutagenesis. Our data indicate that the conserved acidic residues, as well as several other residues at the DEDD signature motifs, are important for RNase T catalytic activity, consistent with a common catalytic mechanism for...