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To study the possibility of utilizing genetically engineered Leifsonia xyli subsp. cynodontis ( Lxc) as an endophytic bacterium in rice, we constructed an Escherichia coli–Lxc shuttle vector, pLGUS, containing a β-glucuronidase reporter gene, which was stable both in vitro and in vivo. Lxc grows and expresses the β-glucuronidase reporter gene in all parts of rice, except for seed. A 2-year field study using three rice varieties from China showed that Lxc inoculation did not have a negative effect on the growth and yield of any of these varieties. Therefore, Lxc has the potential to be used as a benign endophyte for the expression of foreign genes in rice. [ABSTRACT FROM AUTHOR]