Aryl acylamidase was purified from an extract of N-acetyl-o-toluidine-induced cells of Nocardiu globerulu I F 0 13510 in ten steps. The purified enzyme appeared to be homogeneous from analysis by polyacrylamide gel electrophoresis. The enzyme has a molecular mass of approximately 126 kDa and consists of two subunits which are identical in molecular mass. The purified enzyme catalyzed the hydrolysis of N-acetyl-o-toluidine to o-toluidine and acetic acid at a rate of 47.7 pmol . min-' . mg-' at 35°C. It also catalyzed the hydrolysis of various anilide derivatives and esters, as well as the transfer of an acetyl group to aniline as an acetyl acceptor. The purified enzyme was sensitive to thiol reagents such as HgClz and p-chloromercuribenzoate. The amino-terminal sequence (28 amino acid residues) of the enzyme was determined. Based on the substrate specificity of this enzyme, the pathway intermediates involved in the conversion of n-acetyl-o-toluidine to 4-hydroxy-N-acetyl-o-toluidine are discussed Microbial hydroxylation of aromatic compounds catalyzes position-specific and stereospecific reactions efficiently. This reaction has been utilized in efforts to produce useful compounds in the field of medicine and for chemical industries 6wc0cH3 -t 1/2 0, -no &c0cH3 ( 1 1 Recently, we surveyed the hydroxylation of N-acetyl-otoluidine to 4'-hydroxy-N-acetyl-o-toluidine by various bacteria and actinomycetes. Nocardia globerula I F 0 13510 was selected as the best strain to accumulate 4-hydroxy-N-acetylo-toluidine [lo]. As soon as N-acetyl-o-toluidine was added to culture broth of N. globerulu, o-toluidine was formed. Subsequently, in accordance with the decrease in o-toluidine, an accumulation of 4'-hydroxy-N-acetyl-o-toluidine in the culture broth was observed. Therefore, we presumed that the first step may be the hydrolysis of N-acetyl-o-toluidine to o-toluidine by aryl acylamidase, being associated with the conversion of N-acetyl-o-toluidine into 4-hydroxy-N-acetylo-toluidine.In the present study, in order to elucidate the accumulation mechanism of 4-hydroxy-N-acetyl-o-toluidine, we attemptedCorrespondence to