The DNA sequence of ggt, the gene that codes for -y-glutamyltranspeptidase (EC 2.3.2.2) of Escherichia coli K-12, has been determined. The sequence contains a single open reading frame encoding the signal peptide and large and small subunits, in that order. This result suggests that E. coli y-glutamyltranspeptidase is processed posttranslationally.-y-Glutamyltranspeptidase (GGT) ( (29), but the mechanism of its regulation remains to be elucidated.GGT consists of one large and one small subunit (18,28,34). Mammalian GGTs are synthesized as single propolypeptides and then processed into large and small subunits (9,16,19,20). It was of interest to us to determine whether E. coli GGT is also synthesized as a single polypeptide and processed later.To obtain information on these points, we performed DNA sequencing of E. coli K-12 ggt in this study.The nucleotide sequence of E. coli DNA inserted in pSH101 (27) was determined in both directions by the M13 dideoxy-sequencing method (23,26,35) Fig. 1. The large subunit is located proximal to the N terminus and the small subunit is distal to it. We looked upstream for the possible initiation codon, Shine-Dalgarno sequence (25), and promoter; the likeliest ones are shown in Fig. 1 (2,3,9,16,19,20,32). This kind of processing is very rare in procaryotes, but some examples have been reported (21,24,31). In the case of penicillin acylase, a spacer sequence between two subunits is known (21, 24), but that kind of sequence was not reported in E. coli S-adenosylmethionine decarboxylase (31) and mammalian GGTs (5,10,15,17,22). Since the molecular weight of the large subunit of E. coli GGT was 39,200 by sodium dodecyl sulfate-polyacrylamide gel electrophoresis analysis (28), which coincides with the molecular weight calculated from the sequence data (39197.68), the proteolytic cleavage is thought to occur only between Gln-390 and Thr-391 and between Ala-25 and Ala-26.The secondary structure at this site (Gln-390 and Thr-391) was calculated by the method of Chou and Fasman (4) to be a turn, which is preferentially recognized by signal peptidases (8). However, since signal peptidase II shows preferential cleavage between glycine and cysteine and since signal peptidase I prefers the C terminus of a signal peptide to be an amino acid with a small side chain, such as alanine, serine, or glycine (8), neither of these signal peptidases is likely to be the protease responsible for the cleavage between Gln-390 and Thr-391. More studies are needed to determine when, where, and how the processing into large and small subunits takes place and what kind of protease is responsible for this processing.A likely signal peptide consisting of 25 amino acids was found at the N terminus, with the cleavage occurring between No DNA sequence showing high similarity with the consensus sequence for the u70 promoter was found at the N terminus. Since E. coli GGT is best expressed at 20°C and is expressed only very weakly at 37°C (29), it might be one of the cold shock proteins (13). In E. coli, the heat sh...