Cyclic imide-transforming activity was found to be widely distributed in bacteria, yeast and molds. This activity was not correlated with cyclic ureide-transforming activity in bacteria, but there was some correlation in yeast and molds. These two activities are probably catalyzed by different enzymes in bacteria. Besides the well-known cyclic ureide transformation, cyclic imide transformation by microorganisms was common.ß 1998 Federation of European Microbiological Societies. Published by Elsevier Science B.V.