Bacterial polyesters have shown potential as biodegradable plastics. Microorganisms capable of producing these polyesters from cheaper carbon sources and methods for their efficient recovery are widely studied worldwide. Methylobacterium sp V49, an environmental isolate, was cultivated on a mineral salts medium containing different carbon sources. Maximum accumulation of poly-3-hydroxybutyrate (PHB) within the bacterial cell was observed with glucose as the carbon source. Methanol and sugars such as sucrose and lactose also induced PHB accumulation. The effect of C:N ratio on polymer accumulation was studied. Different strategies for the extraction and recovery of the polymer from the cells were compared. A non-solvent-based method using a high-pressure homogenizer in the presence of SDS was found to be the most satisfactory. Maximum recovery of 98% was achieved by homogenizing the cells at 400 kg cm(-2) in 5% SDS solution.