-lactamase is a bacterial enzyme that catalyzes the hydrolysis of -lactam antibiotics such as penicillins and cephalosporins. TEM-1 -lactamase is a prevalent -lactamase found in Gram-negative bacteria and is capable of hydrolyzing both penicillins and cephalosporins, except for the extended-spectrum cephalosporins. To identify the sequence determinants in the active site for a given antibiotic substrate, random libraries were constructed that each contain all possible amino acid combinations for the designated region of TEM-1 -lactamase. To establish the determinants of substrate specificity for cephalosporins versus those for penicillins, these active site libraries have been screened for mutants with high levels of activity for the second generation cephalosporin cephaloridine. Based on the sequence results, substitutions of W165S, A237T, and E240C were identified as cephalosporin-specific. Kinetic analysis of these mutants was done to determine whether each is capable of distinguishing between the two classes of antibiotics. Both the A237T and E240C substitutions, alone or in combination, exhibited increased cephalosporinase activity and decreased penicillinase activity relative to the wild-type enzyme. A sequence comparison between functional mutants selected for cephaloridine hydrolytic activity and functional mutants previously selected for ampicillin hydrolytic activity suggests that TEM-1 -lactamase has greater restrictions in maintaining cephalosporinase activity versus maintaining penicillinase activity.-lactam antibiotics, such as the penicillins and cephalosporins, are among the most commonly used antimicrobial agents. The production of -lactamases, which catalyze -lactam hydrolysis, is the predominant mechanism of bacterial resistance to these antibiotics (1). -lactamases are grouped into 4 classes (A, B, C, and D) based on primary sequence homology (2, 3). Classes A, C, and D are serine hydrolases (3) while class B consists of zinc metalloenzymes (4). TEM-1 -lactamase is a plasmid encoded, class A enzyme that can efficiently cleave the penicillins and some cephalosporins (5). The third generation or extended-spectrum cephalosporins, such as ceftazidime and cefotaxime, however, are poor substrates for the TEM-1 enzyme (6).Changes in the substrate specificity of TEM-1 -lactamase due to amino acid substitutions in the enzyme have been observed among resistant clinical isolates in response to selective pressure applied by extended-spectrum antibiotics (6). The most common amino acid substitutions occur at residues 104, 164, and 237-240, both as individual and as combinatorial substitutions (numbering of amino acids according to Ambler et al. (7)). The substitutions are thought to provide more favorable interactions between the enzyme and the bulkier side chains of the extended-spectrum cephalosporins, thus increasing the catalytic efficiency of the enzyme (6).Because of the importance of mutation-meditated changes in TEM-1 -lactamase substrate specificity during the development of antibiot...