Immobilized cells of the yeast Hansenula capsulata IFO 0974 could catalyze the asymmetric reduction of acetophenone to (S)-1-phenylethanol with almost complete enantioselectivity using glucose as an energy source. Depending on the operational conditions, 1 to 3 mol glucose were required for the reduction of 1 mol of acetophenone. A packed-bed reactor gave a higher conversion than a batch reactor because of its anaerobic conditions and the fact that reverse oxidation was prevented in the former reactor. However, the formation of CO2 bubbles made continuous operation difficult. A shallow-bed reactor, from which CO2 bubbles could be easily removed, improved the conversion to over 90%. Continuous production of (S)-1-phenylethanol was realized at a significantly high enantiomeric excess for 220 h by incorporating cell re-cultivation.