We report the 2.4 Angstrom X-ray crystal structure of a protein with c
hitosan endo-hydrolase activity isolated from Streptomyces N174, The s
tructure was solved using phases acquired by SIRAS from a two-site met
hyl mercury derivative combined with solvent flattening and non-crysta
llographic two-fold sym metry averaging, and refined to an R-factor of
18.5 %. The mostly alpha-helical fold reveals a structural core share
d with several classes of lysozyme and barley endochitinase, in spite
of a lack of shared sequence. Based on this structural similarity we p
ostulate a putative active site, mechanism of action and mode of subst
rate recognition. It appears that Glu 22 acts as an acid and Asp 40 se
rves as a general base to activate a water molecule for an S(N)2 attac
k on the glycosidic bond. A series of amino-acid side chains and backb
one carbonyl groups may bind the polycationic chitosan substrate in a
deep electronegative binding cleft.