Penicillin production by free and agar immobilized Penicillium chrysogenum cells was investigated in a stirred tank reactor. Penicillin production was increased two times with immobilized cells. In order to verify the oxygen transfer efficiency in STR, oxygen mass transfer coefficient was determined by using dynamic gassing out method at the end of steady state operation of the reactor after achieving penicillin production. The oxygen mass transfer coefficient (KLa) obtained in STR with 20%

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... ) agar immobilized beads, at 1 VVM (Unit volume of air per unit volume of the reactor per minute) of air flow rate and 250 RPM of agitator speed gave maximum amount of antibiotic production in the reactor. The oxygen mass transfer coefficient (KLa) obtained in stirred tank reactor (STR) is 18hr-1.