Polymorphisms in the apolipoprotein E (APOE) gene affect the risk of Alzheimer disease and the amount of amyloid b-protein (Ab) deposited in the brain. The apoE protein reduces Ab levels in conditioned media from cells in culture, possibly through Ab clearance mechanisms. To explore this effect, we treated multiple neural and non-neural cell lines for 24 h with apoE at concentrations similar to those found in the cerebrospinal fluid (1-5 lg/mL). The apoE treatment reduced Ab40 by 60-80% and Ab42 to a lesser extent (20-30%) in the conditioned media. Surprisingly, apoE treatment resulted in an accumulation of amyloid precursor protein (APP)-C-terminal fragments in cell extracts and a marked reduction of APP intracellular domain-mediated signaling, consistent with diminished c-secretase processing of APP. All three isoforms of apoE, E2, E3 and E4, had similar effects on Ab and APP-Cterminal fragments, and the effects were independent of the low-density lipoprotein receptor family. Apolipoprotein E had minimal effects on Notch cleavage and signaling in cell-based assays. These data suggest that apoE reduces c-secretase cleavage of APP, lowering secreted Ab levels, with stronger effects on Ab40. The apoE modulation of Ab production and APP signaling is a potential mechanism affecting Alzheimer disease risk. Keywords: amyloid b-protein, amyloid precursor protein, apolipoprotein E, c-secretase. The apolipoprotein E (APOE) e4 allele is a genetic risk factor for sporadic Alzheimer disease (AD) (Rebeck et al. 1993;Saunders et al. 1993;Strittmatter et al. 1993); however, the mechanism of this increased risk is unclear. Apolipoprotein E in the CNS is implicated in repair, synaptogenesis, nerve growth and development (Mahley 1988;Poirier et al. 1993). Human studies indicate that the APOE e4 allele affects amyloid pathology, resulting in increased amyloid deposition in AD (Rebeck et al. 1993;Saunders et al. 1993) and increased brain levels of the amyloid b-protein (Ab) species ending at val-40 (Ab40) (Gearing et al. 1996;Ishii et al. 1997;Mann et al. 1997;McNamara et al. 1998). Apolipoprotein E colocalizes with amyloid plaques and apoE has been characterized as a 'pathological molecular chaperone', mediating b-pleated sheet formation of polypeptide fragments (Wisniewski and Frangione 1992). Studies of amyloid precursor protein (APP) transgenic mice lacking APOE support a role for apoE in affecting Ab fibril formation. Abbreviations used: Ab, amyloid b-protein; AD, Alzheimer disease; AICD, APP intracellular domain; apoE, apolipoprotein E; APP, amyloid precursor protein; CHO, Chinese hamster ovary; CTF, C-terminal fragment; E (141)149) 2, tandem double sequence containing amino acids 141-149 of the receptor-binding domain of apoE; HDL, high density lipoprotein; HEK, human embryonic kidney; LDL, low-density lipoprotein; LRP, LDL receptor-related protein; NDEC, construct containing Notch bp 5374-7836 lacking the extracellular domain but containing the membrane-spanning region, including the c-secretase cleavage site, and...