Horizontal gene transfer is now recognized as an important mechanism of evo
lution. Several methods to detect horizontally transferred genes have been
suggested. These methods are based on either nucleotide composition or the
failure to find a similar gene in closely related species, Genes that evolv
e vertically between closely related species can be divided into those that
retain homologous chromosomal positions (positional orthologs) and those t
hat do not. By comparing open reading frames in the Escherichia coli and Sa
lmonella typhi genomes, we identified 2,728 positional orthologs since thes
e species split 100 MYA. A group of 1,144 novel E. coli genes were unusuall
y diverged from their S. typhi counterparts. These novel genes included tho
se that had been horizontally transferred into E. coli, as well as members
of gene pairs that had been rearranged or deleted. Positional orthologs wer
e used to investigate compositional methods of identifying horizontally tra
nsferred genes. A large number of E, coli genes with normal nucleotide comp
osition have no apparent ortholog in S. typhi, and many genes of atypical c
omposition do, in fact, have positional orthologs. A phylogenetic approach
was employed to confirm selected examples of horizontal transmission among
the novel groups of genes. Our analysis of 80 E. coli genes determined that
a number of genes previously classified as horizontally transferred based
on base composition and codon bias were native, and genes previously classi
fied as native appeared to be horizontally transferred. Hence, atypical nuc
leotide composition alone is not a reliable indicator of horizontal transmi
ssion.