The cyclin-dependent kinases are key cell cycle regulators whose activation is required for passage from one cell cyde phase to the next. In mammalian cells, CDK2 has been implicated in control ofthe G, and S phases. We have used a two-hybrid protein interaction screen to identify cDNAs encoding proteins that can interact with CDK2. Among those identified was a protein (KAP), which contained the HCXX-XXGR motif characteristic of protein tyrosine phosphatases. KAP showed phosphatase activity toward substrates containing either phosphotyrosine or phosphoserine residues. Since KAP is not significantly similar to known phosphatases beyond the catalytic core motif, it represents an additional class of dual specificity phosphatase. KAP interacted with cdc2 and CDK2 in yeast. In mammalian cells, KAP also associated with cdc2 and CDK2 but showed a preference for cdc2. The ability of KAP to bind multiple cyclin-dependent kinases suggests that it may play a role in cell cycle regulation.In fission and budding yeasts, control of both the G1/S and G2/M transitions is accomplished through the activity of a single cycin-dependent kinase known as cdc2 in Schizosaccharomyces pombe Phosphatase Assays. The entire coding sequence of the KAP cDNA was inserted into the bacterial expression vector pGEX-KG to form a plasmid that directed the expression of a fusion between glutathione S-transferase (GST) and KAP (pGST-KAPw). We also constructed a similar plasmid encoding a fusion between GST and a mutant KAP protein in which Cys-139 had been changed to Ser (pGST-KAPm). These plasmids were transformed into Escherichia coli BL21 for fusion protein expression. Cells containing each plasmid were grown at 370C to a density of OD600 = 0.5; the cultures were then shifted to 230C-250C, and isopropyl P-Dthiogalactopyranoside was added to 0.4 mM. After 12-14 hr, cells were harvested, washed once in phosphate-buffered saline, and resuspended in GCB [50 mM TrisHCl, pH 8.0/200 mM NaCl/1 mM EDTA, 1% Triton X-100/1 mM dithiothreitol (DTT)/1 x protease inhibitors (2 ,g of leupeptin per ml/2 ,ug of aprotinin per ml/0.3 ,.g of benzamide per ml/10 yg of soybean trypsin inhibitor per ml/100 /Ag of L-1-tosylamido-2-phenylethyl chloromethyl ketone per ml/50