CD73 (ecto-5′-nucleotidase), a glycosyl phosphatidylinositol (GPI) anchored purine salvage enzyme expressed on the surface of human T and B lymphocytes, catalyzes the conversion of purine and pyrimidine ribo- and deoxyribonucleoside monophosphates to the corresponding nucleosides. The cellular distribution, cDNA sequence, and structure of CD73 are reviewed. CD73 serves as a costimulatory molecule in activating T cells. A Jurkat T cell line transfected with the CD73 cDNA revealed that neither enzymatic activity nor the GPI anchor is necessary for T cell activation in vitro via CD73, while expression of p56^lck, CD45 and the T cell receptor are required. Models for the transmission of signals via CD73 and other GPI-anchored proteins are discussed. CD73 generated adenosine functions in cell signalling in many physiologic systems, including intestinal epithelium, ischemic myocardium, and cholinergic synapses. The hypothesis that CD73 produces adenosine that is important for T cell development is presented.