This Small Business Innovation Reseach Phase I project is addressed toward the isolation of antibodies which demonstrate catalytic properties by encapsulating cells in gel microdrops and analyzing using flow cytometry. Fluorescent products will be retained within the agarose microsphere and cells of interest can be recovered for cloning or gene analysis using fluorescent activated cell sorting. Successful completion of Phase I studies will lead to development of a rapid, automated method for isolating, analyzing and recovering cells producing antibodies of interest. This novel technology can be adapted as a back end screen for recombinant and chemical libraries currently used in a wide array of applications. Catalytic antibodies can be used to produce a virtually inexhaustible source of biocatalysts. The ability to generate specific proteases would have a significant impact on biotechnology and medicine for use as therapeutics as well as industrial enzymes. The total estimated worldwide market for catalytic antibodies is estimated to be in excess of $ 1.0 billion.