The human DUSP15 gene encodes an uncharacterized 235-amino acid member of the subfamily of small dual specificity protein phosphatases related to the Vaccinia virus VH1 phosphatase. Similar to VHR-related MKPX (VHX) (DUSP22), the predicted protein has an N-terminal myristoylation recognition sequence, and we show here that both are indeed modified by the attachment of a myristate to Gly-2. In recognition of this relatedness to VHX, we refer to the DUSP15-encoded protein as VH1-related member Y (VHY). We report that VHY is expressed at high levels in the testis and barely detectable levels in the brain, spinal cord, and thyroid. A VHY-specific antiserum detected a protein with an apparent molecular mass of 26 kDa, and histochemical analysis showed that VHY was readily detectable in pachytene spermatocytes (midstage of meiotic division I) and round spermatids and weakly in Leydig cells (somatic cells outside of the seminiferous tubules). When expressed in 293T or NIH-3T3 cells, VHY was concentrated at the plasma membrane with some staining of vesicular structures in the Golgi region. Mutation of the myristoylation site Gly-2 abrogated membrane location. Finally, we demonstrate that VHY is an active phosphatase in vitro. We conclude that VHY is a new member of a subgroup of myristoylated VH1-like small dual specificity phosphatases.Phosphate is removed from phosphoproteins by several unrelated classes of protein phosphatases, including the serine/ threonine-specific phosphatases (PP1, PP2, etc.) 1 and three families of cysteine-based protein tyrosine phosphatases (PTPs) (reviewed in Refs. 1-3). There is also a newly discovered family of metal ion-dependent aspartic acid-based PTPs represented by the four Eyes Absent proteins (4 -6). The largest family of cysteine-based (7) phosphatases is made up of those related to the first sequenced PTP, PTP1B (8), and the receptor-like enzyme, CD45. Within this family are also 19 phosphatases with predominantly nonprotein substrates, 17 of them specific for the D3-phosphate of inositol phospholipids (9, 10) and two acting on RNA during the mRNA capping process (11,12). Another subgroup of 38 enzymes, referred to as the "classical" PTPs (13), have a deep catalytic pocket (ϳ9 Å), which only allows the long side chain of phosphotyrosine to reach the catalytic machinery (14). Accordingly, these PTPs are strictly tyrosine-specific. Other members of the PTP family have a more shallow catalytic pocket, and many of them dephosphorylate both phosphoserine/threonine and phosphotyrosine residues, at least in vitro (15)(16)(17)(18)(19)(20). These "dual specificity" phosphatases (DSPs) include the 11 MAP kinase phosphatases (MKPs) that dephosphorylate the mitogen-activated protein kinases Erk, Jnk, and p38 (21, 22) at their dually phosphorylated TXY activation loop motif.Another subgroup of DSPs, which we have referred to as the "atypical" DSPs (22) (as opposed to the "typical" DSPs, the MKPs), includes a number of poorly known enzymes that lack specific MAP kinase-targeting motifs and tend...