Tyr-phosphorylation in Saccharomyces cerevisiae is essential in controlling the activity of MAP kinase regulating mating, pseudohyphal growth, and cell wall biosynthesis. Yeast serves as a model system for studying the biological function of many protein kinases and PTPs. Two LMW-PTP from yeast have been cloned, namely, Ltp1 from S. cerevisiae and Stp1 from Schizosaccharomyces pombe. The sequences of both enzymes are relatively similar to those of the mammalian LMW-PTP. Recently we showed that the yeast immunophilin Fpr3 interacts with Stp1 and its dephosphorylated state induces a growth defective phenotype. Here we show the phosphatase activity of Ltp1 on Fpr3 and we demonstrated that Tyr 184 is the residue phosphorylated on in vivo Fpr3. We also described the marked activation of Ltp1 by adenine in S. cerevisiae proteome and determined in vivo the influence of tyrosine phosphorylation on Fpr3 localization. Ó 2004 Elsevier Inc. All rights reserved.Keywords: LMW-PTP; Saccharomyces cerevisiae Ltp1; Immunophilin Fpr3; Tyrosine phosphorylation in yeast Phosphotyrosyl protein phosphatases are structurally diverse enzymes that have fundamental roles in cellular processes, including effects on metabolism, cell proliferation, and differentiation [1]. Although in budding yeast conventional tyrosine kinases are not present, Zhu et al.[2] using a chip technology identified 27 kinases able to phosphorylate poly-Glu-Tyr, a typical artificial substrate of bona fide tyrosine kinases. Moreover, Tyrphosphorylation has been shown in Saccharomyces cerevisiae to be essential in controlling the activity of MAP (mitogen-activated-protein) kinases which, in turns regulate mating, osmosensing pseudohyphal and invasive growth, spore wall assembly, and cell wall biosynthesis [3]. The low-molecular weight protein tyrosine phosphatases (LMW-PTP) are single-domain cytosolic enzymes with molecular masses of approximately 18 kDa. The active site sequence motif of these enzymes has a conserved (V/I)CXGNXCRS sequence. Members of this family have been identified in a wide variety of organisms, including bacteria, yeast, rat, bovine, and human [4][5][6][7][8], suggesting that these enzymes have important cellular functions. Yeast serves as a simple, but often useful, model system for studying the biological function of many protein kinases and PTPs. Two LMW-PTP from yeast have been cloned, namely, Ltp1 from S. cerevisiae [9] and Stp1 from Schizosaccharomyces pombe [10]. The sequences of both enzymes are relatively similar to those of the mammalian LMW-PTP, with identity of 42% and 39% for the Stp1 and Ltp1, respectively. The physiological role of the yeast enzymes is still unknown but the mammalian LMW-PTP shows a broad range of