Epoxide hydrolase-encoding cDNA sequences were isolated from the basidiomycetous yeast species Rhodosporidium toruloides CBS 349, Rhodosporidium toruloides CBS 14 and Rhodotorula araucariae CBS 6031 in order to evaluate the molecular data and potential application of this type of enzymes. The deduced amino acid sequences were similar to those of the known epoxide hydrolases from Rhodotorula glutinis CBS 8761, Xanthophyllomyces dendrorhous CBS 6938 and Aspergillus niger LCP 521, which all correspond to the group of the microsomal epoxide hydrolases. The epoxide hydrolase encoding cDNAs of the Rhodosporidium and Rhodotorula species were expressed in Escherichia coli. The recombinant strains were able to hydrolyze trans-1-phenyl-1,2-epoxypropane with high enantioselectivity.