Soybean oil deodorizer distillate (SODD) is a useful material for purification of tocopherols and phytosterols (referred to as sterols). The SODD was first distilled, and the two substances were enriched. The preparation, which mainly contained free fatty acids (FFAs), sterols, and tocopherols, was named SODD tocopherols/sterols concentrate (SODDTSC). If sterols are converted to steryl esters and FFAs are converted to fatty acid methyl esters (FAMEs), relatively easy purification of tocopherols and steryl esters can be achieved because the boiling points of FAMEs, tocopherols, and steryl esters are different significantly. Hence, the development of a new two-step in situ reaction system was tried out for esterification of sterols with FFAs (first step) and esterification of FFAs with methanol (MeOH) (second step). A mixture of SODDTSC/water (95:5, w/w) and 250 units (U)/g-mixture of Candida rugosa lipase was prepared beforehand for the first-step reaction, and was agitated at 40 degrees C for 24 h with dehydration at 20 mmHg. Sterols were efficiently esterified, and the degree of esterification reached 95%. To the reaction mixture were added 7 M amounts of MeOH against unreacted FFAs, 20 wt.% water, and 25 U/g-mixture of Alcaligenes sp. lipase. The second-step reaction was then conducted at 30 degrees C for 20 h. Consequently, 95% FFAs were converted to FAME, and steryl esters synthesized by the first-step reaction were not reconverted to free sterols. Finally, SODDTSC (1.5 kg) was subjected to this two-step in situ reaction, and tocopherols and steryl esters were purified from the reaction mixture by short-path distillation. Tocopherols were purified to 72% (yield, 88%) and steryl esters were purified to 97% (yield, 97%). (c) 2005 Elsevier B.V. All rights reserved.