Retrovirus entry into cells is mediated by specific interactions between virus envelope glycoproteins and cell surface receptors. Many of these receptors contain multiple membrane-spanning regions, making their purification and study difficult. The jaagsiekte sheep retrovirus (JSRV) receptor, hyaluronidase 2 (Hyal2), is a glycosylphosphatidylinositol (GPI)-anchored molecule containing no peptide transmembrane regions, making it an attractive candidate for study of retrovirus entry. Further, the hyaluronidase activity reported for human Hyal2, combined with its broad expression pattern, may point to a critical function of Hyal2 in the turnover of hyaluronan, a major extracellular matrix component. Here we describe the properties of a soluble form of human Hyal2 (sHyal2) purified from a baculoviral expression system. sHyal2 is a 54-kDa monomer with weak hyaluronidase activity compared to that of the known hyaluronidase Spam1. In contrast to a previous report indicating that Hyal2 cleaved hyaluronan to a limit product of 20 kDa and was active only at acidic pH, we find that sHyal2 is capable of further degradation of hyaluronan and is active over a broad pH range, consistent with Hyal2 being active at the cell surface where it is normally localized. Interaction of sHyal2 with the JSRV envelope glycoprotein was analyzed by viral inhibition assays, showing >90% inhibition of transduction at 28 nM sHyal2, and by surface plasmon resonance, revealing a remarkably tight specific interaction with a dissociation constant (K D ) of 32 ؎ 1 pM. In contrast to results obtained with avian retroviruses, purified receptor was not capable of promoting transduction of cells that do not express the virus receptor.Retroviruses enter host cells by executing a complex molecular program resulting in the fusion of viral envelope and the host cell plasma membrane. Key players in this process are the retroviral envelope glycoprotein (Env) and the corresponding target cell receptor proteins. Although protocols for production and purification of solubilized recombinant Env fragments have been developed for several retroviruses, their receptor counterparts have generally proven difficult to produce and purify because they are class IV (multi-pass) integral membrane proteins. For example, the gammaretrovirus receptors Pit1, Pit2, Xpr, Flvcr, and Cat-1 function or are predicted to function as transporters for small molecules and contain from 8 to 13 predicted membrane-spanning regions (44).The current model for fusogenic virus entry is based on studies done with the influenza virus (8). Endocytosis, followed by the acidification of the endosomal compartment, causes the envelope glycoprotein to undergo profound structural reorganization, bringing the viral membrane into very close proximity to the endolysosomal membrane (reviewed in references 10 and 21). Although some retroviruses require this acidification step for productive infection (42, 49), many are able to infect cells directly at the plasma membrane at neutral pH (25,42,60). In these ca...