Neonatal mortality in developing countries accounts for 30 – 50 % of infant deaths. Almost 20% of neonates develop sepsis and 1% die of sepsis related causes. Frequently isolated causative pathogens (Klebsiella pneumonia, Staphylococcus aureus, Pseudomonas, etc) known to be ESBL (Extended Spectrum Beta-Lactmase) producers are resistant to third generation cephalosporins, penicillins as well as to monobactams. The rampant irrational use of ordinary and high end antibiotics is responsible for this bacterial resistance.