Cell-free cyclization of S-(L-a-aminoadipyl)-L-cysteinyl-D-valine to isopenicillin N by lytic enzyme extracts of Cephalosporium acremonium M-0198 was stimulated by ferrous ions. The optimum concentration of FeSO4 was 80 ,uM. No additional stimulation was observed with ascorbate, adenosine 5'-triphosphate, or a-ketoglutarate, but Triton X-100 and sonication of the extracts increased activity. ZnSO4 was very inhibitory to enzyme activity; CUSO4 was somewhat less inhibitory, and the least effective of the three was MnCl2. The dimer of the tripeptide was converted to a penicillin that has the biological spectrum of isopenicillin N, and this reaction was also stimulated by FeSO4. We found that sonication can be used directly to prepare extracts with cyclization activity from mycelia, without preparing protoplast lysates. The kinetics of cyclase appearance and disappearance during fermentation were similar to those of ring-expansion activity, i.e., enzyme appeared and peaked 13 h after growth ceased and then disappeared.Both our group (7) and Abraham's group (9) have shown, independently, that 6-(L-a(aminoadipyl)-L-cysteinyl-D-valine (LLD-tripeptide) is cyclized to isopenicillin N by extracts of Cephalosporium acremonium (Fig. 1). O'Sullivan et al. (9) isolated the product of the cell-free conversion and determined that the side chain of the penicillin was L-a-aminoadipic acid. Because oxidation of deacetoxycephalosporin C to deacetylcephalosporin C is stimulated by ferrous ions, ascorbate, and a-ketoglutarate (12) and because oxidative ring-expansion of penicillin N to deacetoxycephalosporin C is stimulated by ferrous ions and ascorbate (4, 10) we checked the effect of these additives on the oxidative ring-closure reaction. We also tested the effect of Triton X-100, which, we found, stimulates ring-expansion by these same cell-free extracts (11).We also wanted to determine whether the dimer of LLD-tripeptide, i.e., bis[S-(L-a-aminoadipyl)-L-cysteinyl-D-valine]disulfide, could be converted to isopenicillin N. This dimer is known to be produced by certain blocked mutants of C. acremonium (5)