A new low-cost pgalactosidase (lactase) preparation for whey permeate saccharification was developed and characterized. A biocatalyst with a lactase activity of 10 U/mg, a low transgalactosylase activity and a protein content of 0.22 mg proteidmg was obtained from a fermenter culture of the fungus Penicillium notatum. Factors influencing the enzymatic hydrolysis of lactose, such as reaction time, pH, temperature and enzyme and substrate concentration were standardized to maximize sugar yield from whey permeate. Thus, a 98.1% conversion of 5% lactose in whey permeate to sweet (glucose-galactose) syrup was reached in 48 h using 650 P-galactosidase unitdg hydrolyzed substrate. After the immobilization of the acid Pgalactosidase from Penicillium notarum on silanized porous glass modified by glutaraldehyde binding, more than 90% of the activity was retained. The marked shifts in the pH value (from 4.0 to 5.0) and optimum temperatures (from 50 "c to 60 "C) of the solid-phase enzyme were observed and discussed. The immobilized preparation showed high catalytic activity and stability at wider pH and temperature ranges than those of the free enzyme, and under the best operating conditions (lactose, 5%; pgalactosidase, 610-650 U/g lactose; pH 5.0; temperature 55 "C). a high efficiency of lactose sacchxification (84-88%) in whey permeate was achieved when lactolysis was performed both in a batch process and in a recycling packed-bed bioreactor. It Seems that the promising results obtained during the assays performed on a laboratory scale make this immobilizate a new and very viable preparation of P-galactosidase for application in the processing of whey and whey permeates.