Cyclodextrin glucanotransferase (CGTase) gene of Bacillus macerans was subcloned down-stream of yeast ADH1 promoter and expressed in Saccharomyces cerevisiae. Most of the CGTase expressed was in the extracellular medium with a maximum activity of about 0.28 unit ml(-1) after 48 h cultivation. The recombinant CGTase was secreted as an N-linked-glycosylated form and predominantly produced alpha -cyclodextrin from starch.