Human L1 elements are highly abundant poly(A) (non-LTR) retrotransposo
ns whose second open reading frame (ORF2) encodes a reverse transcript
ase (RT). We have identified an endonuclease (EN) domain at the L1 ORF
2 N-terminus that is highly conserved among poly(A) retrotransposons a
nd resembles the apurinic/apyrimidinic (AP) endonucleases. Purified L1
EN protein (L1 ENp) makes 5'-PO4, 3'-OH nicks in supercoiled plasmids
, shows no preference for AP sites, and preferentially cleaves sequenc
es resembling L1 in vivo target sequences. Mutations in conserved amin
o acid residues of L1 EN abolish its nicking activity and eliminate L1
retrotransposition. We propose that L1 EN cleaves the target site for
L1 insertion and primes reverse transcription.