In a water-organic solvent, two-phase conversion system, CoQ(10) could be produced directly from solanesol and para-hydroxybenzoic acid (PHB) by free cells of Sphingomonas sp. ZUTE03 and CoQ(10) concentration in the organic solvent phase was significantly higher than that in the cell. CoQ(10) yield reached a maximal value of 60.8 mg l(-1) in the organic phase and 40.6 mg g(-1)-DCW after 8 h. CoQ(10) also could be produced by gel-entrapped cells in the two-phase conversion system. Soybean oil and hexane were found to be key substances for CoQ(10) production by gel-entrapped cells of Sphingomonas sp. ZUTE03. Soybean oil might improve the release of CoQ10 from the gel-entrapped cells while hexane was the suitable solvent to extract CoQ(10) from the mixed phase of aqueous and organic. The gel-entrapped cells could be re-used to produce CoQ(10) by a repeated-batch culture. After 15 repeats, the yield of CoQ(10) kept at a high level of more than 40 mg l(-1). After 8 h conversion under optimized precursor's concentration, CoQ(10) yield of gel-trapped cells reached 52.2 mg l(-1) with a molar conversion rate of 91% and 89.6% (on PHB and solanesol, respectively). This is the first report on enhanced production of CoQ(10) in a two-phase conversion system by gel-entrapped cells of Sphingomonas sp. ZUTE03.