Nonproliferating cells of Penicillium lilacinum (Thom) metabbolized progesterone successively to 20-1hydroxy-4-pregnen-3-one, testosterone, androstenedione, and testololactone. Testosterone and androstenedione were readily interconvertible. 1 1-a-Hydroxyprogesterone was transformed in an analogous way and its intermediate, 11-a,20-fldihydroxy-4-pregnen-3-one, was isolated and identified by a combination of microbiological and chemical methods.