The gene (palI) encoding isomaltulose synthase (PalI) from a soil bacterial isolate, Klebsiella sp. strain LX3, was cloned and characterized. PalI converts sucrose into isomaltulose, trehalulose, and trace amounts of glucose and fructose. Sequence domain analysis showed that PalI contains an ␣-amylase domain and (/␣) 8 -barrel structures, suggesting that it belongs to the ␣-amylase family. Sequence alignment indicated that the five amino acid residues of catalytic importance in ␣ Isomaltulose (6-O-␣-D-glucopyranosyl-D-fructose, commonly referred to as palatinose) is a sucrose isomer with physical and organoleptic properties similar to those of sucrose. It has been suggested as a noncariogenic alternative to sucrose (1) and has now been widely used as a sugar substitute in food. Unlike ingestion of sucrose, ingestion of isomaltulose has only a minor effect on the concentration of glucose in blood, indicating its potential as a parenteral nutrient acceptable to diabetics and nondiabetics (6). Several microorganisms have been found to form isomaltulose and trehalulose from sucrose, for example Protaminobacter rubrum (39), Serratia plymuthica (5), Erwinia rhapontici (4), Klebsiella planticola CCRC 19112 (7), Pseudomonas mesoacidophila MX-45 (18), and Agrobacterium radiobacter .Isomaltulose synthase, also known as sucrose isomerase, has been purified from S. plymuthica (14, 33), E. rhapontici (4), a Klebsiella sp. (24), and Pseudomonas mesoacidophila . In addition to isomerizing sucrose to produce isomaltulose and trehalulose, the enzyme reaction also releases small amounts of glucose and fructose as by-products (7,14,31,33). The isomaltulose synthase from S. plymuthica even converted sucrose to isomaltose and isomelezitose (33). The product composition varies depending on the bacterial strain used. Protaminobacter rubrum (15), S. plymuthica NCIB 8285 (5), E. rhapontici NCPPB 1579 (4), and K. planticola CCRC 19112 (7) produce mainly isomaltulose (75 to 85%), whereas Pseudomonas mesoacidophila MX-45 (17) and A. radiobacter MX-232 (19) produce more trehalulose (90%) than isomaltulose. The reaction of these enzymes is strongly influenced by temperature. The optimum temperature for isomaltulose production by the enzyme from S. plymuthica ATCC 15928 is around 30°C, and no product is produced at 55°C (33), indicating the thermolability of isomaltulose synthase. Isomaltulose synthase sequence information is required to clarify the molecular mechanism of isomerization and assess the feasibility of engineering thermostability.We recently identified a new isomaltulose-producing bacterial isolate, Klebsiella sp. strain LX3 (L.-H. Zhang, unpublished data). Biochemical analyses showed that this isolate converts sucrose mainly into isomaltulose, with small amounts of trehalulose and trace amounts of glucose and fructose. In the present study, we report the cloning and characterization of the gene (palI) encoding isomaltulose synthase (PalI) from Klebsiella sp. strain LX3. The recombinant enzyme was overexpressed in Escherichia co...