In the past year, we have witnessed considerable progress towards an u
nderstanding of the workings of caveolae. Highlights include the ident
ification of new caveolin family members, the characterization of VIP2
1-caveolin as a cholesterol-binding oligomeric protein, and evidence f
or functional interactions between caveolins and heterotrimeric G prot
eins. In addition, novel systems for caveolae purification and for stu
dying caveolae biogenesis are starting to reveal insights into the mol
ecular basis of caveolae formation and function.