The production of an esterase by Fusarium oxysporum, grown on tomato skins as the sole carbon source, was studied in submerged and solid state cultures. Under optimum growth conditions, enzyme yields as high as 7.3 U/ml of culture medium and 19.4 U/g of carbon source were obtained. The esterase catalysed the synthesis of esters in organic solvents. Geraniol was transacetylated in hexane by the esterase using triacetyl as an acetyl donor. The geranyl acetate yield was 68%.