An exonuclease that appears to represent the predominant nuclease activity in cytoplasmic extracts of sarcoma 180 ascites cells has been partially purified and characterized. The enzyme attacks RNA chains in a 5' to 3' direction, and releases 5'-mononucleotides. The initial cleavage, however, can occur at either the first, second and probably third phosphodiester linkage in some RNAs. The enzyme attacks transcripts terminated with a 5'-triphosphate more slowly than those with a 5' monophosphate, and releases a compound larger than GTP from transcripts that begin with a pppG. Capped transcripts are cleaved at least as readily as those with a 5'-P, yielding a compound larger than 7mGpppGm. The occurrence of an such an exonuclease capable of attacking capped RNAs would make it possible for mammalian cells to initiate mRNA degradation by a 5' exonucleolytic mechanism.