ADAM12 has been implicated in cell-cell interactions in myogenesis and cancer, but the structure of the mature form of ADAM12 is not known, and its localization on the cell surface has been questioned. In this report, we show that full-length ADAM12 is N-glycosylated in the endoplasmic reticulum (ER) and proteolytically processed in the trans-Golgi network to an ϳ90-kDa form. The ϳ90-kDa form, which lacks the prodomain, was the predominant form present at the cell surface. Replacement of Leu 73 in the putative ␣-helical region in the prodomain with proline resulted in retention of ADAM12 in the ER and a complete lack of its processing. However, deletion of the entire pro-and metalloprotease domains did not affect the processing and trafficking of ADAM12. In contrast, replacement of the cytoplasmic domain of ADAM12 with that of ADAM9 or adding a c-Myc tag at the C terminus led to a significant increase in transport of the protein to the cell surface. These results suggest that the cytoplasmic domain of ADAM12 plays an important role in regulating ADAM12 exit from the ER. We conclude that properly folded mouse ADAM12, after passing a rate-limiting step of exit from the ER, is processed in the secretory pathway and reaches the cell surface, where it can mediate adhesionmediated signaling.ADAMs, a family of proteins containing a disintegrin and metalloprotease domain, play important roles in many biological processes involving cell-surface proteolysis and cell-cell or cell-matrix interactions (1-3). ADAMs have been implicated in many vital functions during development (4 -7) and in the pathogenesis of cancer (8 -10), rheumatoid arthritis (11), Alzheimer's disease (12), and inflammatory responses (9). With an exception of the ADAMTS subfamily (ADAMs with thrombospondin motifs) and alternative splice variants of several family members, ADAMs are type I transmembrane proteins expressed in all animal organisms from worm to human. A typical ADAM protein contains an N-terminal secretion signal and pro-, metalloprotease, disintegrin-like, cysteine-rich, epidermal growth factor-like, transmembrane, and cytoplasmic domains.The metalloprotease domains of many, but not all, ADAMs contain a consensus sequence (HEXXHXXGXXH) for the active site of zinc-dependent metalloproteases (13). These ADAMs are predicted to be active proteases involved in shedding of the ectodomains of membrane proteins, which is critical for cellsurface remodeling, regulating growth factor availability, and modulating the capacity of cells to respond to extracellular stimuli (14, 15). At least six members of the ADAM family have been demonstrated to have proteolytic activity. ADAM17 (tumor necrosis factor-␣-converting enzyme) releases soluble tumor necrosis factor-␣ from its membrane precursor (16,17). It also cleaves the tumor necrosis factor-␣ receptor, transforming growth factor-␣, and L-selectin (6); interleukin-1 receptor type II (18); amyloid precursor protein (12); ErbB4/HER4, a member of the epidermal growth factor receptor family (19); and Notch (...