The initiation of intracellular signaling events through the 55 kDa tu
mor necrosis factor-receptor (TNF-R55) appears to depend on protein in
termediates that interact with specific cytoplasmic domains of TNF-R55
. By combined use of the yeast interaction trap system and a peptide s
canning library, the novel WD-repeat protein FAN has been identified,
which specifically binds to a cytoplasmic nine amino acid binding moti
f of TNF-R55. This region has been previously recognized as a distinct
functional domain that is both required and sufficient for the activa
tion of neutral sphingomyelinase (N-SMase). Overexpression of full-len
gth FAN enhanced N-SMase activity in TNF-treated cells, while truncate
d mutants of FAN produced dominant negative effects. The data suggest
that FAN regulates ceramide production by N-SMase, which is a crucial
step in TNF signaling.