In the mouse pre-B-cell line 18-81, cells can switch production in vitro from immunoglobulin p chain to y2b chain. The gene encoding the y2b chain is created by a rearrangement of the I gene. This rearrangement always takes place within a homolog. In cells with a y2b gene, most of the time the gene segment encoding the constant region of the ,u chain is deleted, but often the rearrangement leads to cells that produce no immunoglobulin, and all DNA sequences are retained. The latter result is due to an inversion. Inversions exclude the unequal sister chromatid exchange model of the heavy-chain class switch. Looping out is an intermediate step in the process of generating an inversion. Our findings demonstrate that the switch rearrangement occurs by looping out and deletion.When injected with an antigen, higher vertebrates can respond by producing antibodies that are immunoglobulins of various classes. These classes differ in the heavy (H) chain that combines with the light chain to form the complete immunoglobulin molecule. In the mouse, the early immune response is dominated by IgM, which contains the H chain ,, and the later immune response is dominated by IgG3, IgGl, IgG2b, IgG2a, IgA, and (rarely) IgE, which contain the H chains y3, yl, y2b, y2a, a, and E, respectively. At the genetic level, the gene encoding the ,u chain consists of a variable (V)-region gene segment, which has been somatically assembled from one each of the VH, diversity (D), and joining (JH) segments, and the nearby C,,, gene segment, which encodes the constant (C) region of the ,u chain. Upon H-chain switching, which occurs within a clone derived from a committed lymphocyte (1, 2), the V region remains the same, but the C region changes. C,, is replaced by C,3, C 11 C,,2b, CE, or C., which are the C-region gene segments of the respective chains and are closely linked to C,,, in that order (reviewed in refs. 3 and 4).This rearrangement event generally results in deletion of the DNA sequences between a site within the intron 5' to C,, and a site within the intron 5' to the particular C-region gene segment that is to be expressed.