Stem cells represent a unique population of cells with self-renewal capacity. Although they are important therapeutic targets, the genetic manipulation of tissue-specific stem cells has been limited, which complicates the study and practical application of these cells. Here, we demonstrate successful gene trapping and homologous recombination in spermatogonial stem cells. Cultured spermatogonial stem cells were transfected with gene trap or gene targeting vectors. Mutagenized stem cells were expanded clonally by drug selection. These cells underwent spermatogenesis and produced heterozygous offspring after transplantation into the seminiferous tubules of infertile mouse testes. Heterozygous mutant mice were intercrossed to produce homozygous gene knockouts. Using this strategy, the efficiency of homologous recombination for the occludin gene locus was 1.7% using a nonisogenic DNA construct. These results demonstrate the feasibility of altering genes in tissue-specific stem cells in a manner similar to embryonic stem cells and have important implications for gene therapy and animal transgenesis.spermatogenesis ͉ germ cell ͉ testis ͉ transplantation S tem cells represent a unique cell population with self-renewal potential (1). Although stem cells are low in number, these cells proliferate extensively to sustain the various self-renewing tissues, such as bone marrow and intestine. Although these tissue-specific stem cells normally divide very slowly, stem cells are the last cell type to be destroyed after cytotoxic damage, and they regenerate the entire tissue in a relatively short time. In addition, stem cells often have migratory activities, and they can be transplanted between animals; transplanted stem cells migrate to a specific niche and regenerate the self-renewing tissue. Because of their unique properties, stem cells have become the attractive target of cell and gene therapies.Among the many types of tissue-specific stem cells, spermatogonial stem cells are unique in that they have germ-line potential (2, 3). Genetic modification of spermatogonial stem cells creates permanent changes in the germ line, which are transmitted to the offspring by means of fertilization. In contrast to female germ-line cells, which cease to divide after birth, male germ-line cells proliferate continuously and produce sperm throughout the life of the animal. If these stem cells could be cultured and manipulated in a manner similar to embryonic stem (ES) cells (4, 5), they could be used to create knockout animals. As a first step toward this goal, a germ cell transplantation technique was developed in 1994 (6, 7), in which dissociated donor testis cells colonized the seminiferous tubules of infertile recipient testis and produced donor-derived spermatogenesis and offspring. Although this technique was an opportunity to produce offspring from manipulated spermatogonial stem cells, it has been difficult to produce transgenic animals using spermatogonial stem cells, because their number is very low in the testis, and the lack of me...