The tissue inhibitors of metalloproteinases (TIMPs) block matrix metallopro
teinase (MMP)-mediated increases in cell proliferation, migration, and inva
sion that are associated with extracellular matrix (ECM) turnover. Here we
demonstrate a direct role for TIMP-2 in regulating tyrosine kinase-type gro
wth factor receptor activation. We show that TIMP-2 suppresses the mitogeni
c response to tyrosine kinase-type receptor growth factors in a fashion tha
t is independent of MMP inhibition. The TIMP-2 suppression of mitogenesis i
s reversed by the adenylate cyclase inhibitor SQ22536, and implicates cAMP
as the second messenger in these effects. TIMP-2 neither altered the releas
e of transforming growth factor alpha from the cell surface, nor epidermal
growth factor (EGF) binding to the cognate receptor, EGFR, TIMP-2 binds to
the surface of AS49 cells in a specific and saturable fashion (K-d = 147 pM
), that is not competed by the synthetic MMP inhibitor BB-94 and is indepen
dent of MT-1-MMP. TIMP-2 induces a decrease in phosphorylation of EGFR and
a concomitant reduction in Grb-2 association. TIMP-2 prevents SH2-protein-t
yrosine phosphatase-l (SHP-1) dissociation from immunoprecipitable EGFR com
plex and a selective increase in total SHP-1 activity. These studies repres
ent a new functional paradigm for TIMP-2 in which TIMP suppresses EGF-media
ted mitogenic signaling by short-circuiting EGFR activation.