Acarbose fermentation was conducted by cultivation of Actinoplanes sp. CKD485-16. Approximately 2,300 mg/L of acarbose was produced at the end of cultivation along with 600 mg/L of the acarbose byproduct component C. Maltose, a known moiety of acarbose, should be maintained at high concentration levels in culture broths for efficient acarbose production. The acarbose yield increased with an increasing osmolality of the culture medium, with a maximum value of 3,200 mg/L obtained at 500 mOsm/kg. Component C was also produced in proportion to the osmolality. Conversion of acarbose to component C was accomplished with resting whole cells. Inhibitors of the conversion of acarbose to component C were sought since component C is probably derived from acarbose. Valienamine was found to be a potent inhibitor, resulting in a more than 90% reduction in component C formation at a 10 muM concentration. Effects were similar in a 1,500-L pilot fermentor with acarbose and component C yields of 3,490 and 43 mg/L at 500 mOsm/kg, respectively.