The phosphate ester is an extremely important chemical bond within the
living cell, serving as an energy source, as a means of joining RNA/D
NA molecules, and as an efficient mechanism to regulate the activity o
f enzymes and proteins by modifying amino acid side-chains. Protein ph
osphorylation is a highly regulated process by which information can b
e shuttled from the cell surface to the nucleus. There are two classes
of enzymes that regulate signalling through the phosphorylation and d
ephosphorylation of proteins, namely protein kinases and protein phosp
hatases. This review will focus on the structure and function of the p
rotein phosphatases. Protein phosphatases are generally divided into t
wo main groups based on substrate specificity. Protein Phosphatases (P
Ps) specifically hydrolyze serine/threonine phosphoesters and Protein
Tyrosine Phosphatases (PTPs) are phosphotyrosine-specific. A sub-famil
y of PTPs, dual specificity phosphatases or dual specificity PTPs, are
capable of efficient hydrolysis of both phosphotyrosine and phosphose
rine/threonine. Recently solved X-ray structures of both PTPs and PPs
have provided a wealth of new knowledge on the structure and catalytic
mechanism of both enzyme families. Although both PPs and PTPs catalyz
e phosphoester hydrolysis, they utilize completely different structure
s and distinct catalytic mechanisms. These differences among the phosp
hatases are in stark contrast to the serine/threonine and tyrosine pro
tein kinases which are all predicted to have a common structure (revie
wed by Johnson et al., 1996).