For the last 20 years, fragment assembly in DNA sequencing followed the "ov
erlap-layout-consensus" paradigm that is used in all currently available as
sembly tools. Although this approach proved useful in assembling clones, it
faces difficulties in genomic shotgun assembly. We abandon the classical "
overlap-layout-consensus" approach in favor of a new EULER algorithm that,
for the first time, resolves the 20-year-old "repeat problem" in fragment a
ssembly. Our main result is the reduction of the fragment assembly to a var
iation of the classical Eulerian path problem that allows one to generate a
ccurate solutions of large-scale sequencing problems. EULER, in contrast to
the CELERA assembler, does not mask such repeats but uses them instead as
a powerful fragment assembly tool.