()-Ethyl-3-hydroxyglutarate, ()-3, is an intermediate in the synthesis of the statin side chain. Here, a new two-step, indirect biotransformation pathway involving the formation of ethyl ()-4-carbamoyl-3-hydroxybutanoate, ()-2, as an intermediate for ()-3 production was developed using with ethyl ()-4-cyano-3-hydroxybutyate, ()-1, as substrate. Maximum conversion was with 10 g ()-1/l, 7 g cells/l (dry wt), pH 7.5 and 25A degrees C. A yield of 98 +/- A 0.5% (w/w) was attained within 8 h.