The asymmetric reduction of alpha-keto esters carried out using actinomycete as a biocatalyst. Ethyl-3-methyl-2-oxobutanoate and methyl benzoylformate were reduced to the corresponding (R)-alcohols with high optical purities, The conversion ratios of alpha-keto esters to the corresponding alpha-hydroxy esters using thermophilic actinomycetes were increased by addition of glycerol into the reaction mixture as an additive. Production of optically pure alpha-hydroxy esters has been achieved by the repetitive use of a Ca2+-alginate-immobilized cells of a thermophilic actinomycete, Pseudonocardia thermophila IFO 12133.