Xylene monooxygenase of Pseudomonas putida mt-2 catalyzes multistep oxidations of one methyl group of toluene and xylenes. Recombinant Escherichia coli expressing the monooxygenase genes xylM and xylA catalyzes the oxygenation of toluene, pseudocumene, the corresponding alcohols, and the corresponding aldehydes, all by a monooxygenation type of reaction (B. Bühler, A. Schmid, B. Hauer, and B. Witholt, J. Biol. Chem. 275: 10085-10092, 2000). Using E. coli expressing xylMA, we investigated the kinetics of this one-enzyme three-step biotransformation. We found that unoxidized substrates like toluene and pseudocumene inhibit the second and third oxygenation steps and that the corresponding alcohols inhibit the third oxygenation step. These inhibitions might promote the energetically more favorable alcohol and aldehyde dehydrogenations in the wild type. Growth of E. coli was strongly affected by low concentrations of pseudocumene and its products. Toxicity and solubility problems were overcome by the use of a two-liquid-phase system with bis(2-ethylhexyl)phthalate as the carrier solvent, allowing high overall substrate and product concentrations. In a fed-batch-based twoliquid-phase process with pseudocumene as the substrate, we observed the consecutive accumulation of aldehyde, acid, and alcohol. Our results indicate that, depending on the reaction conditions, product formation could be directed to one specific product.During the last few decades, the microbial degradation pathways of aromatic and aliphatic hydrocarbons have received a lot of scientific interest because of the high potential of the enzyme systems involved for environmental (43) and preparative applications (38, 59). These pathways are usually initiated by an oxygenase-catalyzed chemo-, regio-, and stereoselective hydroxylation of the hydrocarbons, a reaction for which often no organic chemical counterpart is known (9, 13).The xylene degradation pathway of Pseudomonas putida mt-2 and its initiating oxygenase, the xylene monooxygenase (XMO), are among the best-studied examples of aromatic hydrocarbon degradation (5,36,57,61). The enzymes for xylene degradation are encoded on a catabolic plasmid, the TOL plasmid pWW0. XMO is the first enzyme in the upper degradation pathway for toluene and xylenes, in which a carboxylic acid is formed (1,16,58). The upper pathway also involves benzyl alcohol dehydrogenase and benzaldehyde dehydrogenase, which catalyze the oxidation of benzyl alcohols via benzaldehydes to benzoic acids (46-48). The carboxylic acid is then transformed to substrates of the Krebs cycle through the meta cleavage pathway (10,14,36,55).XMO consists of two polypeptide subunits, encoded by xylM and xylA (16,52). XylA, the NADH:acceptor reductase component, is an electron transport protein transferring reducing equivalents from NADH to XylM (45). XylM, the hydroxylase component, is located in the membrane, and its activity depends on phospholipids and ferrous ion, with a pH optimum of 7 (44, 62).The substrate spectrum of XMO was investigated, wi...