An experimental study was carried out to evaluate some advantages of immobilization of Gluconobacter oxydans GPM60 entrapped in calcium alginate beads. For this purpose, several parameters were examined regarding immobilization to maximize the production. Production was increased significantly (p<0.01) with immobilized Gluconobacter oxydans GPM60 (entrapped in calcium alginate) compared to the production by free cells. Maximum production (19.6 mg/ml) was obtained with CaCl2, 0.2 (M); sodium alginate, 2.5%; bead diameter, 6mm and 24h storage period.