To examine the potential for applications of TthLAC, a monomeric ( 53 kDa) laccase encoded by the genome of Thermus thermophilus (strain HB 27) which can be produced at low cost in Escherichia coli. Functional, thermostable and mildly alkalophilic TthLAC of high purity (> 90%) was produced through simple heating of suspended (TthLAC overexpressing) E.coli cells at 65 A degrees C. For reactions of short duration (< 1 h) the temperature for optimal activity is 90 A degrees C. However, TthLAC undergoes slow partial unfolding and thermal inactivation above 65 A degrees C, making it unsuitable for long incubations above this temperature. With different substrates, optimal function was observed from pH 6 to 8. With the substrate, ABTS, catalytic efficiency (K (m)) and maximum velocity (V-max) at 60 A degrees C and pH 6.0 were determined to be 2.4 x 10(3) A mu M and 0.04 x 10(3) A mu M/min respectively. Ultra-pure, affinity-purified TthLAC was used to confirm and characterize the enzyme's ability to oxidize known (laccase) substrates such as ABTS, syringaldazine and 4-fluoro-2-methylphenol. TthLAC decoloured up to six different industrial dyes, with or without the use of redox mediators such as ABTS. Unlike versatile laccases from most other sources, which tend to be thermolabile as well as acidophilic, TthLAC is a versatile, thermostable, mildly alkalophilic laccase which can be produced at low cost in E.coli for various redox applications.