Catalytic activity of the first stage graphite intercalation compound (GIC) in the form C22CuAl2Cl8.5 has been studied for n-pentane conversion. The activity was compared with the noninserted heterocomplex. In the presence of copper II tetrachloroaluminate in a batch reactor at 27 degrees C after 26 hours 46.6 mole% of n-pentane were converted. Under the same conditions with CuAl2Cl8-GIC the conversion was only 6.7 mol%. In a fixed-bed flow reactor system the temperature dependent activity of the intercalate reached a maximum n-pentane conversion at 88 degrees C, but relatively rapid deactivation of the catalyst was observed.