Penicillin acylase of Escherichia coli catalyses the hydrolysis and synthesis of b-lactam antibiotics. To study the role of hydrophobic residues in these reactions, we have mutated three active-site phenylalanines. Mutation of aF146, bF24 and bF57 to Tyr, Trp, Ala or Leu yielded mutants that were still capable of hydrolysing the chromogenic substrate 2-nitro-5-[(phenylacetyl)amino]-benzoic acid. Mutations on positions aF146 and bF24 influenced both the hydrolytic and acyl transfer activity.