The production of sorbitol by permeabilized cells of Zymomonas mobilis immobilised in kappa-carrageenan has been investigated. Permeabilised cells were treated with ceiyltrimethylammoniumbromide (CTAB) prior to immobilisation to cross-link the enzymes of the glucose-fructose oxidoreductase (GFOR). Rigidity of the immobilised beads was increased two-fold with 90% conversion efficiency by addition of 40% (w/v) polyols (glycerol 25 g+propylene glycol 15g) to 60% (w/v) distilled water containing 2.5% (w/v) kappa-carrageenan as final concentration prior to immobilisation. kappa-Carrageenan beads entrapping permeabilised cells were dried to improve bead rigidity and storage stability. During a semi-batch process for 72 h with dry beads, there was an improvement of the loss of enzyme activity (less than 10%). In a batch process, the K-m,K-fructose value for the free cells, wet beads and dry kappa-carrageenan beads were 71.7, 72.4 and 116.7 g litre(-1) respectively. Higher productivity was obtained with a two-stage continuous packed bed reactor with both wet and dry kappa-carrageenan beads.