Lipases of a newly isolated Pseduomonas aeruginosa MTCC 5113 were assessed for transesterification of benzyl alcohol and vinyl acetate to produce the flavoring agent benzyl acetate. Crude lipase preparations that minimized the cost of the biocatalyst, achieved benzyl alcohol conversion of 89% within 3h at 30 degrees C. In contrast, purified and expensive commercially available lipases of Candida antarctica and porcine pancreas achieved much lower conversions at 80% and 15%, respectively. A well-mixed ( approximately 800 rev.min(-1)) batch reactor having the aqueous phase finely dispersed in heptane was used in these studies. Benzyl alcohol conversion was maximal when the enzyme-containing aqueous phase constituted about 50% of the total reactor volume. Use of solvents such as hexane, benzene, toluene and dimethyl sulfoxide reduced conversion compared with the use of heptane.