Local immunoregulatory processes during normal vascular biology or pathogenesis are mediated in part by the production of and response to cytokines by vessel wall cells. Among these cytokines interleukin (IL)-1 is considered to be of major importance. Although vascular smooth muscle (SMC) and endothelial cells (EC) expressed both IL-1 alpha and IL-1 beta as cell-associated, 33-kilodalton (kD) precursors, SMC neither contained detectable mature IL-1 beta, nor processed recombinant IL-1 beta precursor into its mature 17-kD form. Thus, we investigated the expression and function of IL-1 beta-converting enzyme (ICE) in vascular cells. We demonstrate in processing experiments with recombinant IL-1 precursor molecules that EC processed IL-1 beta, in contrast to SMC. Despite the failure of SMC to process IL-1 beta, these cells expressed ICE mRNA, immunoreactive ICE protein, and the expected IL-1 beta nucleotide sequence. The lack of processing was explained by our finding that extracts of SMC specifically and concentration dependently blocked processing of IL-1 beta precursor by recombinant or native ICE. The initial biochemical characterization of the inhibitory activity showed that it is heat-labile, has a molecular size of 50-100 kD, and is associated to the cell membrane compartment. Inhibition of processing, i.e., activation of TL-1 beta precursor by SMC may constitute a novel regulatory mechanism during normal vascular biology or pathogenesis of vascular diseases.