- Continuous and simultaneous production of gluconic acid and sorbitol from glucose and fructose was carried out by using glucose-fructose oxidoreductase and glucanolactonase of Zymomonas mobilis. In order to utilize the enzymes without purification, Zymomonas mobilis was permeabilized with toluene. Optimum conditions for permeabilization and reaction kinetics of permeabilized Zymomonas mobilis were studied. In batch operation with the permeabilized cells immobilized in alginate beads, about 90% conversion was obtained within 35 h reaction. Continuous production of gluconic acid and sorbitol using the immobilized permeabilized cells was carried out. Optimum conditions for continuous operation with the imn~obilized cells were; pH 6.2 and temperature $40^{circ}C$. Maximum productivities for gluconic acid and sorbitol were about 14.5 g/l/h and 14.8 g/l/h respectively at the dilution rate of 0.075 $h^{-1}$ when 300 g/l each of substrates was fed