We identified the ORF YBR264c during the systematic sequencing of the Saccharomyces cerevisiae genome. It encodes a putative protein of 218 amino acids. We demonstrate here that the gene is indeed expressed and encodes a new Ypt in yeast. This protein specifically binds guanine nucleotides and interacts via its C-terminal end with the unique Rab GDP Dissociation Inhibitor (RabGDI). In accordance with a recent proposal, the gene is now designated YPT10. No mutant phenotype could be associated with inactivation of the gene. However, overexpression of YPT10 resulted in defects in growth; microscopic examination of such cells revealed an overabundance of vesicular and tubular structures, suggesting some alteration in the function of the Golgi apparatus. In addition, degradation of the Ypt10 protein, which possesses a PEST sequence, is shown to be dependent on proteasome activity.