The nucleotide sequence of the region between the oad gene, encoding the host specificity protein, and the right-terminal repetition of bacteriophage T5 DNA was determined. Five small open reading frames, the first of which was called llp, were detected, which apparently formed an operon transcribed from a promoter that overlapped the oad promoter. Both promoters were confirmed by primer extension assays. Using mRNA isolated at different times after T5 infection, the llp and oad promoters were identified as early and late promoters, respectively. The N-terminus of the llp gene product possess a signal sequence and a processing site characteristic of lipoproteins. After subcloning and expression of llp, its product Llp was identified as a 7.8 kDa polypeptide. Acylation of Llp was confirmed by addition of globomycin, which resulted in the accumulation of the unprocessed precursor form. FhuA+ cells synthesizing Llp were resistant to phage T5. Resistance was caused by inhibition of adsorption of T5 to its FhuA receptor protein. Resistance could be overcome by derepression of fhuA transcription, suggesting a blocking of FhuA by direct interaction with Llp. Since Llp-mediated T5 resistance has several aspects in common with the phenomenon of lysogenic conversion, we suggest that it should be called lytic conversion.