The isolation of an alkane-oxidizing strain of Pseudomonas oleovorans which maintains its viability at 5 C is described. This strain epoxidates 1-octene at a rate five times that of the parent strain. The most efficient substrates for induction of the epoxidase are C(7), C(8), and C(9), although C(5) to C(12) also serve as growth substrates and inducers. The greater rate may be attributed to an enhanced general stability of the cells as opposed to a modification of the enzyme system involved.