The approach to annotating a genome critically affects the number acid accu
racy of genes identified in the genome sequence. Genome annotation based on
stringent gene identification is prone to underestimate the complement of
genes encoded in a genome. In contrast, over-prediction of putative genes f
ollowed by exhaustive computational sequence, motif and structural homology
search will find rarely expressed, possibly unique, new genes at the risk
of including non-functional genes. We developed a two-stage approach that c
ombines the merits of stringent genome annotation with the benefits of over
-prediction. First we identify plausible genes regardless of matches with E
ST, cDNA or protein sequences from the organism (stage 1). In the second st
age, proteins predicted from the plausible genes are compared at the protei
n level with EST. cDNA and protein sequences, and protein structures from o
ther organisms (stage 2). Remote but biologically meaningful protein sequen
ce or structure homologies provide supporting evidence for genuine genes. T
he method, applied to the Drosophila melanogaster genome, validated 1,042 n
ovel candidate genes after filtering 19,410 plausible genes, of which 12,12
4 matched the original 13,601 annotated genes(1). This annotation strategy
is applicable to genomes of all organisms, including human.