Cells of Fusarium moniliforme SW-902 were entrapped in kappa-carrageenan, and the immobilized cells showed significant production of D-lactonohydrolase activity. Optimum conditions for lactonohydrolase activity were not affected by immobilization. The optimum pH and temperature for both free and immobilized cells were 7.5 and 55 degreesC, respectively. Batch hydrolysis by the immobilized cells was carried out 30 times for 24 h, during which the enzyme activity was stable and the average degree of hydrolysis was 28.0%. After storing at 4 degreesC for 8 weeks, the D-lactonohydrolase activity of the immobilized cells remained stable. (C) 2002 Elsevier Science Ltd. All rights reserved.