. 138: 45-51, 1984; M.-F. Lin and G. M. Clinton, Biochem. J. 235:351-357, 1986) and has been suggested to negatively regulate phosphotyrosine levels, at least in part, by inhibition of tyrosine protein kinase activity (M.-F. Lin and G. M. Clinton, Adv. Protein Phosphatases 4:199-228, 1987; M.-F. Lin, C. L. Lee, and G. M. Clinton, Mol. Cell. Biol. 6:4753-4757, 1986). We investigated the molecular interaction of PAcP with a specific tyrosine kinase, the epidermal growth factor (EGF) receptor, from prostate carcinoma cells. Of several proteins phosphorylated in membrane vesicles from prostate carcinoma cells, PAcP selectively dephosphorylated the EGF receptor. The prostate EGF receptor was more efficiently dephosphorylated by PAcP than by another phosphotyrosyl phosphatase, potato acid phosphatase. Further characterization of the interaction of PAcP with the EGF receptor revealed that the optimal rate of dephosphorylation occurred at neutral rather than at acid pH. Thus, the enzyme that we formerly referred to as PAcP we now call prostatic phosphotyrosyl-protein phosphatase. Hydrolysis of phosphate from tyrosine residues in the immunoprecipitated EGF receptor catalyzed by purified prostatic phosphotyrosyl-protein phosphatase caused a 40 to 50% decrease in the receptor tyrosine kinase activity with angiotensin as the substrate. In contrast, autophosphorylation of the receptor was associated with an increase in tyrosine kinase activity.Tyrosine phosphorylation of cellular proteins is instrumental in the control of cell proliferation mediated by several oncogene protein products and growth factor receptors (5,26,30,52,53). Multiple mechanisms for enhanced tyrosine phosphorylation levels have been revealed. Binding of growth factors to their receptors (26,29), alterations in regulatory regions (2,15,50,60), phosphorylation and dephosphorylation (7,13,14,46,48,62,65,66), and amplified levels (18,61) reported to stimulate (3,7,48,65,66), to inhibit (13,14), or to have no effect (21, 25) on the enzyme activity, depending on the particular tyrosine kinase and the site on the kinase that is phosphorylated. For the growth factor receptors, autophosphorylation at tyrosine residues is stimulated by binding of the specific ligand and is generally followed by stimulation of the rate of phosphorylation of exogenous substrate proteins (26). Autophosphorylation of the insulin receptor has been mechanistically coupled to enhanced kinase activity (48,65,66 (1,6,23,34,37,38). While most of the phosphotyrosyl phosphatase activity in different cell types and tissues has been recovered in the cytosol (24,37,44,54), it has been suggested that cytosolic forms are derived by proteolysis of membrane-bound phosphatases 5477 on May 12, 2018 by guest