Disclosed is a microbiological process which utilizes a biologically pure culture of Sphingomonas sp. DSM 7007 in order to produce a malonyl-7- aminocephalosporanic acid derivative product. Furthermore the process uses cephalosporin C derivative as a substrate for the conversion of the cephalosporin C into the product. The process takes place by one time or continuous addition of substrate so that the concentration of cephalosporin C does not exceed 20 percent by weight. Furthermore, the process is performed at a temperature range of 0-60 degrees celsius and a pH range of 5 to 9.
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