A 16-kb BamHI fragment of the lactose plasmid pNZ63 from Leuconostoc lactis NZ6009 was cloned in Escherichia coli MC1061 by using pACYC184 and was found to express a functional j-galactosidase. Deletion and complementation analysis showed that the coding region for ,-galactosidase was located on a 5. Mutation and deletion analysis showed that lacL expression is essential for LacM production and that both the lacL and lacM genes are required for the production of a functional 1-galactosidase in E. coli. The deduced amino acid sequences of the LacL and LacM proteins showed considerable identity with the sequences of the N-and C-terminal parts, respectively, of ,-galactosidases from other lactic acid bacteria or E. coli. DNA and protein sequence alignments suggest that the L. lactis lacL and lacM genes have been generated by an internal deletion in an ancestral 13-galactosidase gene.Two systems for lactose transport and hydrolysis among bacteria are known. The first system has only been found in gram-positive bacteria and involves a phosphoenolpyruvatedependent phosphotransferase system, by which lactose is phosphorylated during transport and subsequently hydrolyzed by a phospho-,B-galactosidase (for reviews, see references 14 and 22). In the second, more widespread system, lactose is transported across the cellular membrane by a galactoside permease, and the unmodified internalized sugar is hydrolyzed by a 13-galactosidase. Most research has focused on the lactose permease (lacY) and ,-galactosidase (lacZ) genes from Escherichia coli (for reviews, see references 3, 24, and 25), and its lacZ gene has been developed into a useful tool in molecular genetics. Similar lac genes located on chromosomal or plasmid DNA have been found in other gram-negative bacteria (20), and in one instance a lac transposon (Tn951) has been reported (11).Recently, lac genes have been characterized in lactic acid bacteria that are used as starter cultures in dairy fermentations and therefore are highly specialized lactose utilizers. Genetic studies have shown that the lactose-specific phosphotransferase system enzymes are homologous and plasmid encoded in Lactococcus lactis (14)(15)(16)30) and Lactobacillus casei (1, 2, 38). In contrast, the homologous lac genes of Streptococcus thernophilus and Lactobacillus bulgaricus are chromosomally located and have been found to encode unique lactose permeases (28, 37) and ,B-galactosidases that show high similarity to those of gram-negative bacteria (42,43). A plasmid-encoded P-galactosidase in Lactobacillus casei ATCC 393 has been reported (10). In addition, we showed recently that Leuconostoc lactis NZ6009 also contains a lactose plasmid that codes for a P-galactosidase (13). gram-positive cocci that are used for industrial milk and wine fermentations. We recently started the genetic characterization of Leuconostoc spp. (13) and focused on the plasmidlocated lac genes in L. lactis NZ6009 (12). Here we describe the molecular characterization of a DNA fragment from the lactose plasmid pNZ63 that ...