The cultivation of the extremely thermophilic archaeon Thermococcus stetteri in a dialysis membrane reactor was paralleled by the production of an extremely heat-stable proteinase(s). By applying preparative sodium dodecyl sulfate (SDS)-polyacrylamide gel electrophoresis, an SDS-resistant proteinase was purified 67-fold in one step with a yield of 34%. The purified enzyme, which was composed of a single polypeptide chain with a molecular mass of 68 kDa, showed a broad temperature and pH profile (50 to 100(deg)C; pH 5 to 11). The optimal activity with substantial thermal stability was measured with casein at 85(deg)C and pH 8.5 to 9. Inhibition by phenylmethylsulfonyl fluoride and diisopropylfluorophosphate demonstrated that the enzyme was a serine proteinase. The enzyme displayed a relatively narrow substrate specificity, catalyzing the hydrolysis only of N-protected p-nitroanilides or p-nitrophenyl esters of basic (Arg or Lys) or hydrophobic (Phe or Tyr) l-amino acids. l-Phenylglycine amide was also attacked by the proteinase, but with a lower specificity constant. Within the detection limit, no hydrolysis of d-amino acid derivatives was observed. The catalytic efficiency of the enzyme at 80(deg)C (k(infcat)/K(infm) for benzoyl-Arg-p-nitroanilide, 10(sup4)) is the same order of magnitude when compared with that of functionally similar mesophilic enzymes. The proteinase also acts as a transferase, catalyzing the acyl transfer from protected amino acid ester or amide to amino acid amide. The observed thermostability, SDS resistance, relatively narrow substrate specificity, high stereospecificity, and limited catalytic efficiency probably reflect the tighter packing of the thermostable protein molecule and its limited flexibility. This was supported by fluorescence spectra of the enzyme, mainly due to tryptophan residues, in the temperature range of 30 to 90(deg)C. Structural reorganization was observed at temperatures over 100(deg)C. The results obtained could be of relevance for the better understanding of the structure-function relationship of enzymes from extreme thermophiles and suggest possible biotechnological application of the proteinase for resolution of racemic mixtures.