Inactivation of mitotic cyclin-dependent kinases (Cdks) is required for cel
ls to exit mitosis [1,2]. In the budding yeast Saccharomyces cerevisiae, Cd
k inactivation is triggered by the phosphatase Cdc14, which is activated by
a complex network of regulatory proteins that includes the protein kinase
Cdc15 [3-6]. Here we show that the ability of Cdc15 to promote mitotic exit
is inhibited by phosphorylation. Cdc15 is phosphorylated in vivo at multip
le Cdk-consensus sites during most of the cell cycle, but is transiently de
phosphorylated in late mitosis. Although phosphorylation appears to have no
effect on Cdc15 kinase activity, a non-phosphorylatable mutant of Cdc15 is
a more potent stimulator of mitotic exit than wild-type Cdc15, indicating
that phosphorylation inhibits Cdc15 function in vivo. Interestingly, inhibi
tory phosphorylation of Cdc15 is removed by the phosphatase Cdc14 in vitro,
and overproduction of Cdc14 leads to Cdc15 dephosphorylation in vivo. Thus
, Cdc15 serves both as an activator and substrate of Cdc14. Although this s
cheme raises the possibility that positive feedback promotes Cdc14 activati
on, we present evidence that such feedback is not essential for Cdc14 activ
ation in vivo. Instead, Cdc15 dephosphorylation may promote some additional
function of Cdc15 that is independent of its effects on Cdc14 activation.