Cephalosporin production by Cephalosporium acremonium strain C-10 was suppressed when the organic nitrogen source (1.2% L-asparagine) was replaced by 1.2% (NH4)2SO4. A higher level of (NH4)2SO4 (3.5%) led to even greater suppression. Ammonium repression was exerted on formation of delta-(L-alpha-aminoadipyl)-L-cysteinyl-D-valine (ACV) synthetase, together with that of expandase; a lesser effect by ammonium was observed on cyclase production. Inhibition of ACV synthetase activity byammonium was also observed (ca. 50% inhibition at 250 mM NH4+).