Summary. The degradation and conversion of ~-sitosterol to C-17-ketosteroids by Nocardia sp. M 29 was studied. Maximal enzymatic activity was found after 24 h of incubation. Although the key enzymes involved in the decomposition of ~-sitosterol were inducible, no separate induction of side chain hydroxylase or 9~-hydroxylase was possible. Inhibition of the steroid ring cleaving enzyme by ~,e'-dipyridyl resulted in low yields of 4-androstene-3,17=dione and 1,4-androstadiene-3,]7-dione (total yield 22 %). Addition of lipophilic organic adsorbents (Amberlite XAD-2 and XAD-4) stimulated the 1,4-androstadiene-3,17-dione formation (maximal 50 % within 120 h of incubation). Furthermore, 3-oxo-23,24-dinor-l,4-choladienic acid and 3-oxo-23,24-dinor-1,4-choladienic acid methyl ester were accumulated in the presence of Amberlite XAD-2 in moderate yields (total II %).