A cephalosporin acylase from Pseudomonas strain N176 hydrolyses both 7-p-(4-~arboxybutanamido)-cephalosporanic acid (glutarylcephalosporanic acid) and cephalosporin C to 7-amino-cephalosporanic acid. However, its productivity in the original host was low and its activity against cephalosporin C was not sufficient for direct large-scale production of 7-amino-cephalosporanic acid. In order to overcome these problems, we established a high-level expression system for the acylase in Escherichia coli. Tyr270 in the acylase is reported to play an important role in the interaction with glutarylcephalosporanic acid, as determined from the reaction with an affinity-label reagent, 7p-(6-bromohexanoylamido) cephalosporanic acid [Ishii, Y., Saito, Y., Sasaki, H., Uchiyama Ferment. Bioeng. 77,, From carbamoylation with potassium cyanate and site-directed point mutagenesis of the cephalosporin C acylase, we have deduced that Tyr270 exists at a position where it can interact with a residue (possibly Ser239) corresponding to inactivation by carbamoylation. We mutated Met269 and Ala271 of the acylase and found that mutation of Met269 to Tyr or Phe caused a 1.6-fold and 1.7-fold increase, respectively, of specific activity against cephalosporin C as compared to that of the wild-type enzyme. Kinetic studies of these mutants revealed that their k,,, values increased, although their Km values against cephalosporin C were not changed. These data indicate that the mutation of Met269 near Tyr270 induces a minor conformational change to increase the stability of the activated complex with the enzyme and cephalosporin C. In particular, a mutant in which Met269 was replaced by Tyr was 2.5-fold more efficient in converting cephalosporin C to 7-aminocephalosporanic acid than the wild-type enzyme under conditions similar to those in a bio-reactor system.Keywords. Cephalosporin C ; site-directed mutagenesis ; 7-amino-cephalosporanic acid ; carbamoylation ; bioreactor.Recently, enzymic production of chemicals has been preferred to that of the chemical method because plant investment costs are lowered and the ecological problem of organic solvent disposal is eliminated. For 7-amino-cephalosporanic acid, a key intermediate in the production of cephem antibiotics, a two-step enzymic method is attractive in which cephalosporin C is converted to 7-~-(4-carboxybutanamido)cephalosporanic acid (glutarylcephalosporanic acid) with D-aminO acid oxidase and hydrogen peroxide, followed by hydrolysis of glutarylcephalosporanic acid to 7-amino-cephalosporanic acid with glutarylcephalosporanic acid acylase. Recently, a cephalosporin C acylase which directly catalyzes the hydrolysis of cephalosporin C to 7-amino-cephalosporanic acid and a-amino-adipic acid was isolated from a strain of Pseudomonas sp. N176 (Aramori et al., 1991a). It appeared to be useful for the one-step enzymic production of 7-amino-cephalosporanic acid from cephalosporin C. This acylase, designated as N176 acylase, consists of two polypeptide chains (a and p chains) which are formed from ...