cdc25 proteins are universally involved in the control of cell division. Using an original method of sequence analysis, cdc25 proteins from different sources were compared to protein phosphatases. Protein phosphatases could clearly be characterized as two distinct protein families, the phospho-seryl/threonyl phosphatases, and the phospho-tyrosyl phosphatases. None of the cdc25 proteins analyzed fitted with the phospho-tyrosyl phosphatases, indicating that if they indeed possess this biochemical activity, they form a distinct phsophatase protein group. Unexpectedly, higher eucaryotic cdc25 proteins (from human and fly) were found to be structurally related to phospho-seryl/threonyl phosphatases. These results fit well with expected function of the proteins, associated solely in higher eucaryotes, to dephosphorylation of threonine in the cell cycle control protein cdc2.