We have produced ultracold heteronuclear YbRb * molecules in a combined magneto-optical trap by photoassociation. The formation of electronically excited molecules close to the dissociation limit was observed by trap loss spectroscopy in mixtures of 87 Rb with 174 Yb and 176 Yb. The molecules could be prepared in a series of vibrational levels with resolved rotational structure, allowing for an experimental determination of the long-range potential in the electronically excited state.PACS numbers: 34.20.Cf, 37.10.Mn Ultracold polar molecules offer fascinating prospects for the realization of new forms of quantum matter [1] with possible applications to quantum information [2] and to precision measurements [3,4]. While dense atomic clouds are routinely laser-cooled to µK temperatures, the complex internal structure of molecules has so far prevented the successful application of this direct approach. Among the various approaches currently under investigation [5], the production of translationally cold molecules from mixed-species ensembles of ultracold atoms is one of the most promising. The possible routes for the conversion from atoms to molecules involve either the use of magnetically tunable Feshbach resonances [6] or lightassisted photoassociation [7].While Feshbach resonances allow for an efficient and well-controlled preparation of ultracold heteronuclear molecules in high vibrational levels of the electronic ground state, this method is not applicable to all atomic species. In particular, if one of the atomic species does not possess angular momentum in the ground state, experimentally acccessible Feshbach resonances are typically non-existent [6]. In contrast, production of ultracold molecules by photoassociation is in principle possible for all combinations of atomic species.So far all experimental investigations, which have produced ultracold heteronuclear molecules by photoassociation [8,9,10,11,12], including the very recent demonstration of optical trapping [13] and of state transfer of Feshbach molecules [14], have used mixtures of alkalis. In this Letter, we report on the controlled production of ultracold heteronuclear molecules in a mixture of the alkali rubidium (Rb) and the rare earth ytterbium (Yb) in an electronicallly excited state by single-photon photoassociation. While ultimately two or more light fields with different wavelengths will have to be used to produce ultracold ground state molecules [8,10], this is the first decisive step towards the production of a new class of dipolar molecules. The main difference between bialkalis and YbRb is that the ground state of bialkalis is always a 1 Σ 0 while in YbRb it is a 2 Σ 1/2 state. This implies that ground state YbRb molecules posess a significant magnetic dipole moment in addition to their electric dipole moment and can thus be trapped and manipulated using magnetic fields. An intriguing prospect for ultracold molecules with an unpaired electron such as YbRb is the realization of lattice spin models [15]. Our experiments were performe...