The effect of permeabilization of G. suboxydans cells with toluene on the oxidation of D-sorbitol to L-sorbose was investigated. Treatment of the cells with 10% toluene resulted in a three fold increase in the specific sorbitol dehydrogenase activity and a two fold increase in the efficiency of D-sorbitol conversion to L-sorbose of the free cell suspension. When the permeabilized cells were immobilized in calcium alginate, the operational stability during air-lift reactor operation was also found to increase with up to three times longer half-life(44 days) of catalytic activity compared with immobilized intact cells.