The crystal structure of Escherichia coli isoaspartyl aminopeptidase/asparaginase (EcAIII), an enzyme belonging to the N-terminal nucleophile (Ntn)-hydrolases family, has been determined at 1.9-Å resolution for a complex obtained by cocrystallization with L-aspartate, which is a product of both enzymatic reactions catalyzed by EcAIII. The enzyme is a dimer of heterodimers, (␣) 2 . The (␣) heterodimer, which arises by autoproteolytic cleavage of the immature protein, exhibits an ␣␣-sandwich fold, typical for Ntn-hydrolases. The asymmetric unit contains one copy of the EcAIII⅐Asp complex, with clearly visible L-aspartate ligands, one bound in each of the two active sites of the enzyme. The L-aspartate ligand is located near Thr 179 , the N-terminal residue of subunit  liberated in the autoproteolytic event. Structural comparisons with the free form of EcAIII reveal that there are no major rearrangements of the active site upon aspartate binding. Although the ligand binding mode is similar to that observed in an L-aspartate complex of the related enzyme human aspartylglucosaminidase, the architecture of the EcAIII active site sheds light on the question of substrate specificity and explains why EcAIII is not able to hydrolyze glycosylated asparagine substrates.Proteins undergo several age-dependent spontaneous modifications that can limit their useful lifetime. In particular, deamidated, racemized, or isomerized derivatives can be formed in an intramolecular succinimide-mediated rearrangement involving L-asparaginyl or, in a 13-36-fold slower reaction (1), L-aspartyl residues (2). The major product is an Lisoaspartyl (iAsp) 1 -containing protein, in which the peptide backbone has been transferred to the side chain forming a -peptide. Such a serious structural rearrangement usually leads to protein dysfunction. Two mechanisms have been proposed by which organisms may handle the useless proteins and prevent accumulation of the harmful iAsp (3-5).One well defined mechanism involves the repair of some products of spontaneous damage to intracellular proteins. It is based on the enzyme L-isoaspartyl(D-aspartyl)-O-methyltransferase (O-MT), which is found in organisms ranging from bacteria to mammals and plants and initiates the repair pathway by methylation of L-isoaspartyl residues (and D-aspartyl residues in racemized derivatives) (6, 7). Despite the quite wide range of recognized substrates, the repair activity of O-MT is limited (8, 9). The damaged proteins that are not identified and repaired by the enzyme are degraded by cellular proteases to free amino acids and to the relatively stable iAsp-containing diand tripeptides. To prevent accumulation of those harmful isoaspartyl peptides, specialized enzymes with peptidase activity are required (10). Enzymes with isoaspartyl peptidase activity (EC 3.4.19.5) were initially isolated from mammals (10) and bacteria (11). Further studies have revealed the existence of two classes of isoaspartyl peptidases. The first class includes metallopeptidases represented by the Es...