BIT (a brain immunoglobulin-like molecule with tyrosine-based activation motifs) is a brain-specific membrane protein which has two cytoplasmic TAMs (tyrosine-based activation motifs). Using the Far Western blotting technique, we detected association of a 70-kDa protein with the tyrosine-phosphorylated TAMs of BIT. A mouse brain cDNA library in gt11 was screened for this association, and two positive clones encoding tyrosine phosphatase SH-PTP2 were isolated. SH-PTP2 has two SH2 domains and is believed to function as a positive mediator in receptor tyrosine kinase signaling. SH-PTP2 and BIT were coimmunoprecipitated from phosphorylated rat brain lysate, and BIT was a major tyrosine-phosphorylated protein associated with SH-PTP2 in this lysate. This interaction was also observed in Jurkat T cells transfected with BIT cDNA depending on tyrosine phosphorylation of BIT. Bisphosphotyrosyl peptides corresponding to BIT-TAMs stimulated SH-PTP2 activity 33-35-fold in vitro, indicating that two SH2 domains of SH-PTP2 simultaneously interact with two phosphotyrosines of BIT-TAM. Our findings suggest that the tyrosine phosphorylation of BIT results in stimulation of the signal transduction pathway promoted by SH-PTP2 and that BIT is probably a major receptor molecule in the brain located just upstream of SH-PTP2.Protein tyrosine phosphorylation plays an important role in signal transduction and regulates a wide range of cellular processes. Protein-tyrosine kinases and protein-tyrosine phosphatases are highly expressed in the central nervous system, consistent with the importance of tyrosine phosphorylation in neural function (1).BIT 1 (a brain immunoglobulin-like molecule with tyrosinebased activation motifs) is a novel immune antigen receptorlike molecule of the brain.2 This molecule is composed of an antigen receptor-like extracellular domain, a transmembrane domain, and a cytoplasmic region containing two variants of TAM (tyrosine-based activation motif) that was recently designated ITAM (immunoreceptor TAM). This cytoplasmic motif contains two tyrosine phosphorylation sites. TAM was originally described in the immune system where it plays a crucial role in the activation responses of B and T cells (2-5). BIT is one of major substrates of protein-tyrosine kinase(s) in crude brain suspensions 2 and is widely distributed in the brain in synapse-rich regions and in some nerve fibers.3 These findings suggest that the tyrosine phosphorylation of TAMs in BIT may be involved in neural signal transduction. Recent studies in the immune system have demonstrated that the oligomerization of TAMs allows the phosphorylation of two tyrosine residues found in this motif and these phosphotyrosine residues act as a bidentate docking site for the paired Src homology 2 (SH2) domains present in the cytoplasmic tyrosine kinases, Syk and ZAP-70, believed to be indispensable for initiation of the signaling cascade (6 -8). From these investigations, we predicted that TAMs of BIT may recruit tyrosine kinases containing paired SH2 domains to the ...