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2-Phenylethylamine was converted to phenylacetic acid by Escherichia coli K-12 through the action of amine oxidase and aldehyde dehydrogenase. The compound phenylacetic acid is utilized by E. coli K-12 as carbon and energy source. Currently, a second amine oxidase gene is identified which is located near the gene encoding the 2-phenylethylamine oxidase. Results have shown that a gene which encodes a positive regulatory protein required for the expression of amine oxidase and phenylacetaldehyde dehydrogenase (PAD) gene was located next to the PAD genes.