Cell free extracts from Cephalosporium acremonium containing deaoetoxy/-deacetyl cephalosporin C Synthetase activities have been shown to convert Exomethylene cephalosporin C directly to deacetyl cephalosporin C. Labelling experiments in the presence of 13O2, indicated the source of the 3-methylene-oxygen of the latter was dioxygen.1. © 1988.