The ability of a lytic b-glucanase of Arthrobacter GJM-1 to dissolve cell walls of Saccharomyces cereuisine with exception of the chitin-containing fraction was employed for the isolat,ion of chitin-rich residues of the cell walls of synchronously growing populations of virgin cells. Electron microscopical examination of such wall residues isolated from cells a t various stages of the budding cycle showed that the first phase of chitin deposition in the wall corresponds to the formation of a n annular structure found as a part of the bud scar after cell division. The annular chitin-rich structure could not be isolated at cell cycle stages preceding the bud emergence and at earliest stages of bud development. The observations confirmed that the annular structure (chitin ring) formed during bud growth represents a major part of total chitin present in the bud scar after septum closure.