The hypothesis that an acyl-enzyme intermediate of the esterases from Xanthomonas cirri and Acetobacter turbidans is responsible for the acylation of 7-aminodeacetoxycephalosporanic acid and similar compounds by esters of amino acids, recently proposed by Kate, also accounts for the kinetics of hydrolysis of penicillin G by the amidohydrolase from E. coli and other reactions of the enzyme. Some further implications of the mechanism are derived and discussed. In recent studies concerning the acylation of 7-aminodeacetoxycephalosporanic acid (7-ADCA) by the methyl ester of D-phenyl glycine and of similar acylations catalyzed by the esterases from x. cirri and A. turbidans (Kato and coworkers 1980a, 1980b; Kate, 1980) it has been deduced that the reactions proceed via an acy!-enzyme intermediate. Kinetics of the reactions indicate a rate determining acylation of the enzyme by the ester, followed by a fast transfer of the acyl radical to the amino group of 7-ADCA or water, which compete for the acyl group as accepters. The purpose of this communication is to show that this mechanism has broader implications. In particular it accounts for * qhis paper is dedicated to Prof. G. Manecke, a pioneer of immobilized enzyme technology, with oongratulations to his 65thbirthday. 107