The vector form of the Ergun equation was used to numerically predict gas phase streamlines, residence time distributions, chemical conversions and pressure drops in the annulus of a side-outlet spouted bed with an internal draft tube. By varying the position of the side-outlet, it was demonstrated that there exists an optimum location for this outlet at which conversion is a maximum and which shows a greatly improved gas phase residence time distribution in the annulus compared with a conventional spouted bed unit.