Recently, we reported that a cytosolic isoform of protein-tyrosine phosphatase epsilon (PTP epsilon C), when overexpressed, inhibits terminal differentiation and apoptosis of murine M1 myeloblastic leukemia cells induced by interleukin-6. To determine whether these observed effects in vitro correspond to a tumorigenicity of PTP epsilon C-expresser (M1- epsilon C) cells in vivo, parent M1 and M1- epsilon C cells were intravenously inoculated into scid or nude mice, and survival of mice receiving these cell lines was monitored. Unexpectedly, both scid and nude mice inoculated with M1- epsilon C cells showed significantly prolonged survival time than those receiving parent M1 cells. While parent M1 cells inoculated by intravenous injection formed metastatic tumors in the spleen, expression of PTP epsilon C suppressed tumor development in the spleen. The results suggest a suppressive role of PTP epsilon C in tumorigenesis.