Recombinant E. coli B (pLOI297) produced ethanol from a nutrient-supplemented, newsprint prehydrolysate medium, at about a 20% reduction in both yield and productivity compared to a synthetic softwood hemicellulose hydrolysate medium (lacking acetic acid). With pH controlled at 7, the sugar-to-ethanol conversion efficiency with the newsprint prehydrolysate was 74.5% of theoretical maximum. The final ethanol concentration was 14.6 g/L. Reduced ethanol yield was due to by-product formation, principally lactic acid. The specific rates of glucose, mannose and xylose utilization in the synthetic medium were 0.73, 0.42 and 0.22 g/g cell/h respectively. The ethanol yield from the pretreatment processing of newsprint is estimated at 85L per dry metric ton.