The genome-sequenced, Gram-positive bacterium Streptomyces avermitilis harbors an ortholog (SAV_3032) of the previously identified epi-isozizaene synthase (SCO5222) in S. coelicolor A3(2). The sav3032 is translationally coupled with the downstream sav3031 gene encoding the cytochrome P450 CYP170A2 analogous to SCO5223 (CYP170A1) of S. coelicolor A3(2), which exhibits a similar translation coupling. S. avermitilis did not produce epi-isozizaene or any of its oxidized derivatives, albaflavenols and albaflavenone, under in any culture conditions examined. Nonetheless, recombinant SAV_3032 protein expressed in E. coli catalyzed the Mg2+-dependent cyclization of farnesyl diphosphate to epi-isozizaene. To effect the production of epi-isozizaene in S. avermitilis, the sav3032 gene was cloned and placed under control of a copy of the native S. avermilis promoter rpsJp (sav4925). The derived expression construct was introduced by transformation into a large-deletion mutant of S. avermitilis SUKA16. The resulting transformants accumulated epi-isozizaene after 24-hr cultivation. The previously characterized oxidized epi-isozizaene metabolites, (5R)- and (5S)-albaflavenols and albaflavenone, as well as a previously undescribed doubly oxidized epi-isozizaene derivative were isolated from cultures of S. avermitilis SUKA16 transformants in which sav3032 was co-expressed with the P450-encoding sav3031. This new metabolite was identified as 4β,5β-epoxy-7-epi-zizaan-3β-ol which is most likely formed by oxidation of (5S)-albaflavenol.