Neomycin production by free and calcium alginate immobilized cells was investigated in an airlift reactor. The average volumetric productivity with continuous fermentation (72.97 mg/l/h) was greater than with free cells (45.05 mg/l/h). The total neomycin produced with continuous fermentation was 62% greater than with that of free cells. Immobilized Streptomyces particles showed a half-life of 42 days during continuous fermentation under airlift conditions. (C) 2003 Elsevier Ltd. All rights reserved.