Ecto-ATPase (CD39L1) corresponds to the type 2 enzyme of the ecto-nucleoside triphosphate diphosphohydrolase family (E-NTPDase). We have isolated from human ECV304 cells three cDNAs with high homology with members of the E-NTPDase family that encode predicted proteins of 495, 472, and 450 amino acids. Sequencing of a genomic DNA clone confirmed that these three sequences correspond to splice variants of the human ecto-ATPase (NTPDase2␣, -2, and -2␥). Although all three enzyme forms were expressed heterologously to similar levels in Chinese hamster ovary cells clone K-1 (CHO-K1) cells, only the 495-amino acid protein (NTPDase2␣ exhibited ecto-ATPase activity. Immunolocalization studies demonstrated that NTPDase2␣ is fully processed and trafficked to the plasma membrane, whereas the NTPDase2 and -2␥ splice variants were retained in not fully glycosylated forms in the endoplasmic reticulum. The potential roles of two highly conserved residues, Cys 399 and Asn 443 , in the activity and cellular trafficking of the ecto-ATPase were examined. Mutation of Cys 399 , which is absent in NTPDase2 and -2␥, produced a protein completely devoid of nucleotidase activity, while mutation of Asn 443 to Asp resulted in substantial loss of activity. Neither the Cys 399 nor Asn 443 mutants were fully glycosylated, and both were retained in the endoplasmic reticulum. These results indicate that the lack of ecto-nucleotidase activity exhibited by NTPDase2 and -2␥ and the C399S mutant, as well as the large reduction of activity in the N443D mutant are due to alterations in the folding/maturation of these proteins.Extracellular nucleotides modulate many physiological responses through interaction with G protein-coupled metabotropic receptors (P2Y) and ligand-gated ionotropic receptors (P2X) (1-3). Termination of nucleotide-promoted signaling is accomplished by rapid degradation and/or interconversion of extracellular nucleotides by ecto-nucleotidases. Although the primary function of ecto-nucleotidases involves the hydrolysis of extracellular nucleotides, the complete physiological significance of these enzymes is not fully understood. For example, ecto-nucleotidases also have been implicated in physiological phenomena as diverse as cell adhesion (4), purine recycling (5), pain transmission (6), immune function (7), blood hemostasis (8), and others (9, 10).The ecto-nucleoside triphosphate diphosphohydrolases (E-NTPDases) 1 are a family of ecto-nucleotidases, including ecto-ATPases and ecto-ATPDases (apyrases), that hydrolyze nucleoside 5Ј-tri-and diphosphates with isozyme-dependent nucleotide selectivities and biochemical properties. The E-NTPDase family includes membrane-associated enzymes (NTPDase1 to NTPDase4) and soluble enzymes (NTPDase5 and NTPDase6) (see Zimmermann (10) for a review). NTPDase2 (also known as ecto-ATPase or CD39L1) exhibits a strong preference for nucleoside triphosphates (NTPs) over diphosphates (nucleoside diphosphates), hydrolyzing nucleoside diphosphates at 3-5% of the rate of NTPs (10 -14). NTPDase2 contai...