Presenilin-1 (PS1), a polytopic membrane protein primarily localized to the
endoplasmic reticulum, is required for efficient proteolysis of both Notch
and beta-amyloid precursor protein (APP) within their transmembrane domain
s. The activity that cleaves APP (called gamma-secretase) has properties of
an aspartyl protease, and mutation of either of the two aspartate residues
located in adjacent transmembrane domains of PS1 inhibits gamma-secretase
processing of APP. We show here that these aspartates are required for Notc
h processing, since mutation of these residues prevents PS1 from inducing t
he gamma-secretase-like proteolysis of a Notch1 derivative. Thus PSI might
function in Notch cleavage as an aspartyl protease or di aspartyl protease
cofactor. However, the ER localization of PSI is inconsistent with that hyp
othesis, since Notch cleavage occurs near the cell surface. Using pulse-cha
se and biotinylation assays, we provide evidence that PS1 binds Notch in th
e ER/Golgi and is then co-transported to the plasma membrane as a complex.
PS1 aspartate mutants were indistinguishable from wild-type PS1 in their ab
ility to bind Notch or traffic with it to the cell surface, and did not alt
er the secretion of Notch. Thus, PS1 appears to function specifically in No
tch proteolysis near the plasma membrane as an aspartyl protease or cofacto
r.