Myogenesis is a highly ordered process that involves the expression of musc
le-specific genes, cell-cell recognition and multinucleated myotube formati
on. Although protein tyrosine kinases have figured prominently in myogenesi
s, the involvement of tyrosine phosphatases in this process is unknown. SHP
-2 is an SH2 domain-containing tyrosine phosphatase, which positively regul
ates growth and differentiation. We show that in C2C12 myoblasts, SHP-2 bec
omes upregulated early on during myogenesis and associates with a 120 kDa t
yrosyl-phosphorylated complex. We have identified that the 120 kDa complex
consists of the SHP-2 substrate-1 (SHPS-1) and the Grb2-associated binder-1
(Gab-1), SHPS-1, but not Gab-1, undergoes tyrosyl phosphorylation and asso
ciation with SHP-2 during myogenesis, the kinetics of which correlate with
the expression of MyoD. Either constitutive expression or inducible activat
ion of MyoD in 10T1/2 fibroblasts promotes SHPS-1 tyrosyl phosphorylation a
nd its association with SHP-2. It has been shown that p38 mitogen-activated
protein kinase (MAPK) activity is required for the expression/activation o
f MyoD and MyoD-responsive genes. Inhibition of p38 MAPK by SB203580 in dif
ferentiating C2C12 myoblasts blocks MyoD expression, SHPS-1 tyrosyl phospho
rylation and the association of SHPS-1 with SHP-2. These data suggest that
SHPS-1/SHP-2 complex formation is an integral signaling component of skelet
al muscle differentiation.