Inhibitor 2 is a heat-stable protein that complexes with the catalytic
subunit of type-1 protein phosphatase. The reversible phosphorylation
of Thr 72 of the inhibitor in this complex has been shown to regulate
phosphatase activity. Here we show that inhibitor 2 can also be phosp
horylated on tyrosine residues. Inhibitor 2 was P-32-labeled by the in
sulin receptor kinase in vitro, in the presence of polylysine. Phospho
rylation of inhibitor 2 was accompanied by decreased electrophoretic m
obility. Dephosphorylation of inhibitor 2 by tyrosine phosphatase 1B,
restored normal electrophoretic mobility. Phosphotyrosine in inhibitor
2 was detected by immunoblotting with antiphosphotyrosine antibodies
and phosphoamino acid analysis. In addition, following tryptic digesti
on, one predominant phosphopeptide was recovered at the anode. The abi
lity of inhibitor 2 to inhibit type-1 phosphatase activity was diminis
hed with increasing phosphorylation up to a stoichiometry of 1 mole ph
osphate incorporated/mole of inhibitor 2, where inhibitory activity wa
s completely lost. These data demonstrate that inhibitor 2 can be phos
phorylated on tyrosine residues by the insulin receptor kinase, result
ing in a molecule with decreased ability to inhibit type-1 phosphatase
activity. (C) 1995 Wiley-Liss, Inc.