The glucose dehydrogenase (GDH) from Bacillus subtilis BGSC 1A1 was cloned and functionally expressed in Escherichia coli BL21(pGDH1) and XL-1 Blue(pGDH1). Controlled permeabilization of recombinant E. coli BL21 and XL-1 Blue with EDTA-toluene under optimized conditions resulted in permeabilized cells with specific activities of 61 and 14 U/g (dry weight) of cells, respectively, for the conversion of NADP ؉ to NADPH upon oxidation of glucose. The permeabilized recombinant strains were more active than permeabilized B. subtilis BGSC 1A1, did not exhibit NADPH/NADH oxidase activity, and were useful for regeneration of both NADH and NADPH. Coupling of permeabilized cells of Bacillus pumilus Phe-C3 containing an NADPHdependent ketoreductase and an E. coli recombinant expressing GDH as a novel biocatalytic system allowed enantioselective reduction of ethyl 3-keto-4,4,4-trifluorobutyrate with efficient recycling of NADPH; a total turnover number (TTN) of 4,200 mol/mol was obtained by using E. coli BL21(pGDH1) as the cofactorregenerating microorganism with initial addition of 0.005 mM NADP ؉ . The high TTN obtained is in the practical range for producing fine chemicals. Long-term stability of the permeabilized cell couple and a higher product concentration were demonstrated by 68 h of bioreduction of ethyl 3-keto-4,4,4-trifluorobutyrate with addition of 0.005 mM NADP ؉ three times; 50.5 mM (R)-ethyl 3-hydroxy-4,4,4-trifluorobutyrate was obtained with 95% enantiomeric excess, 84% conversion, and an overall TTN of 3,400 mol/mol. Our method results in practical synthesis of (R)-ethyl 3-hydroxy-4,4,4-trifluorobutyrate, and the principle described here is generally applicable to other microbial reductions with cofactor recycling.Biocatalytic oxidoreductions are important reactions in asymmetric synthesis, and they have great potential for industrial production of enantiopure chemicals and pharmaceuticals (4,11,23,24,26). These reactions often require a stoichiometric amount of the expensive cofactor NAD(P)H or NAD(P) ϩ , and thus practical applications require efficient recycling of the necessary cofactor (1,5,9,13,16,17,22,32). In general, cofactor recycling can be achieved by coupling a desired enzymatic reaction with an additional chemical, electrochemical, photocatalytic, or enzymatic reaction, and the enzymatic method is favored (1,5,9,13,16,17,22,32,39). Enzymatic cofactor recycling can be obtained by using "coupled-substrate" (8, 12, 30, 31) and "coupled-enzyme" (14,15,18,19,20,21,29,33,34) approaches. The latter is a more general approach and utilizes the first enzyme for the desired biotransformation and the second enzyme for cofactor regeneration. Formate dehydrogenase (15, 18) and glucose dehydrogenase (GDH) (33, 34) are well-known enzymes used for regeneration of NADH and NADPH, respectively. The "coupled-enzyme" approach has been successfully used with two isolated enzymes (15,18,29,33,34) or whole cells (14,20,21) of a microorganism coexpressing the two necessary enzymes. While the use of isolated enzymes is c...