Escherichia coli is considered one of the most appropriate hosts for the production of recombinant proteins. However, its usage is undermined by its inability to efficiently secrete proteins into the extracellular medium. We selected two cellulolytic enzymes with potential biofuel applications, beta-1, 4-endoglucanase (Endo5A) and beta-1,4-glucosidase (Gluc1C), and determined the genetic and environmental parameters for their optimal secretion into culture medium. Endo5A and Gluc1C were fused with the hyperosmotically inducible periplasmic protein of E. coli, OsmY, and their activities in the extracellular, periplasmic and cytoplasmic fractions were monitored. Most of the endoglucanase activity (0.15 mu mol min(-1) ml(-1)) and beta-glucosidase activity (2.2 mu mol min(-1) ml(-1)) in the extracellular fraction was observed at 16 h post-induction. To reduce the overall cost, we expressed Endo5A and Gluc1C together either via a synthetic operon or through a bifunctional chimeric protein. Both systems efficiently secreted the enzymes, as evident from the functional activities and protein profiles on SDS-PAGE gels. The enzymes secreted via a synthetic operon showed higher activities (0.14 mu mol min(-1) ml(-1) for endoglucanase and 2.4 mu mol min(-1) ml(-1) for beta-glucosidase) as compared to the activities shown by the- bifunctional chimera (0.075 mu mol min(-1) ml(-1) for endoglucanase and 2.0 mu mol min(-1) ml(-1) for beta-glucosidase). The cellulase secretion system developed here has potential for use in the production of lignocellulosic biofuels. (c) 2012 Elsevier Inc. All rights reserved.