With the current access to the whole genomes of various organisms and the completion of the first draft of the human genome, there is a strong need for a structure-function classification of protein families as an initial step in moving from DNA databases to a comprehensive understanding of human biology. As a result of the explosion in nucleic acid sequence information and the concurrent development of methods for high-throughput functional characterization of gene products, the genomic revolution also promises to provide a new paradigm for drug discovery, enabling the identification of molecular drug targets in a significant number of human diseases. This molecular view of diseases has contributed to the importance of combining primary sequence data with three-dimensional structure and has increased the awareness of computational homology modeling and its potential to elucidate protein function. In particular, when important proteins or novel therapeutic targets are identified-like the family of protein tyrosine phosphatases (PTPs) (reviewed in reference 53)-a structure-function classification of such protein families becomes an invaluable framework for further advances in biomedical science. Here, we present a comparative analysis of the structural relationships among vertebrate PTP domains and provide a comprehensive resource for sequence analysis of phosphotyrosine-specific PTPs.PTPs are a key group of signal transduction enzymes which, together with protein tyrosine kinases, control the levels of cellular protein tyrosine phosphorylation. Protein tyrosine kinases phosphorylate cellular substrates on tyrosine residues, and much progress has been made over the last 20 years in elucidating their significance in signal transduction (for reviews, see references 26, 30, 31, 33, 71, and 72). However, it is only recently that the complexities of the PTPs have been appreciated. Thus, today it is recognized that the capacity of PTPs to dephosphorylate phosphotyrosine residues selectively on their substrates plays a pivotal role in initiating, sustaining and terminating cellular signaling (for reviews, see references 1, 4, 19, 32, 35, 46, 55, and 83). It has been shown that both the catalytic domain and noncatalytic segments of the PTPs contribute to the definition of substrate specificity in vivo. Whereas noncatalytic domains may target the PTPs to specific intracellular compartments in which the effective local concentration of substrate is high (3, 19, 51), the PTP catalytic domains themselves confer site-selective protein dephosphorylation by recognizing both the phosphotyrosine residue to be dephosphorylated and its flanking amino acids in the substrate. The combination of structural studies, kinetic analysis of PTP domains (37,74,76,90,91,96), and studies involving substratetrapping mutants (20,23,89) as well as PTP chimeras (60, 82) has convincingly demonstrated that isolated PTP domains may exhibit exquisite substrate selectivity.The structurally conserved PTP domain defines membership of the PTP family, and ...