The MAM (meprin/A5-protein/PTPmu) domain is present in numerous proteins with diverse functions. PTP belongs to the MAM-containing subclass of protein-tyrosine phosphatases (PTP) able to promote cell-to-cell adhesion. Here we provide experimental evidence that the MAM domain is a homophilic binding site of PTP. We demonstrate that the MAM domain forms oligomers in solution and binds to the PTP ectodomain at the cell surface. The presence of two disulfide bridges in the MAM molecule was evidenced and their integrity was found to be essential for MAM homophilic interaction. Our data also indicate that PTP ectodomain forms oligomers and mediates the cellular adhesion, even in the absence of MAM domain homophilic binding. Reciprocally, MAM is able to interact homophilically in the absence of ectodomain trans binding. The MAM domain therefore contains independent cis and trans interaction sites and we predict that its main role is to promote lateral dimerization of PTP at the cell surface. This finding contributes to the understanding of the signal transduction mechanism in MAM-containing PTPs.The phosphorylation state of numerous signaling proteins is controlled by opposing activities of protein-tyrosine kinases and protein-tyrosine phosphatases (PTP) 1 (1). The family of PTPs consists of soluble and receptor-like PTPs (RPTPs) (2). Whereas the intracellular region of RPTPs is relatively similar in all representatives containing either a single or two PTP domains, the extracellular region has a large diversity. PTP belongs to subclass IIB, called "MAM-containing PTP" (2). Besides the MAM domain (meprin/A5-protein/PTPmu domain; Ref.3), their extracellular region contains a single immunoglobulin (Ig)-like domain and four fibronectin (FN) III repeats (4). This structural architecture of ectodomain is similar to members of the cell-adhesion molecule superfamily.PTP is strongly expressed in the endothelial cell layer of the arteries and continuous capillaries as well as in cardiac muscle, bronchial and lung epithelia, retina, and several brain areas (4 -6). At the subcellular level, it is localized at sites of cell-cell contact (7). In this regard, it has been demonstrated that PTP restores E-cadherin-mediated cellular adhesion, when it is expressed in LNCaP human prostate carcinoma cells (8). Physiologically, PTP has been shown to be involved in promotion and regulation of neurite outgrowth (5, 9).Numerous experiments have clearly demonstrated that the extracellular region of PTP promotes cell-cell aggregation in a Ca 2ϩ -independent manner (10, 11). The homophilic binding has been also evidenced in the ectodomains of PTP (12) and PTP (13), strongly suggesting that these RPTPs may be involved in signal transduction through cell-to-cell contact in vivo. Evidence concerning the physiological role of PTP-mediated homophilic binding has been reported in a recent article (14) showing that homophilic interactions trigger rearrangements of the axonal growth cone. However, the molecular mechanism of this interaction remains larg...