Protein-tyrosyl phosphorylation, regulated by protein tyrosine kinases
and protein tyrosine phosphatases (PTPs), is a key cellular control m
echanism. Until recently, little was known about PTPs. However, the pa
st two years have witnessed an explosion of information about PTP stru
cture, regulation and function. Crystal structures of several PTPs hav
e provided insights into enzymatic mechanisms and regulation and sugge
sted the design of 'substrate-trapping' mutants. Candidate hemophilic
and heterophilic ligands for transmembrane PTPs have been identified,
and roles for transmembrane PTPs in regulating cell-cell interactions
have been suggested. Finally, progress has been made in understanding
signaling by Sro homology 2 domain containing PTPs and PTPs controllin
g yeast osmoregulatory pathways.