The feasibility of preparing a megaporous, monolithic cellulose support, MonoCell TM with a high degree of functional substitution, and subsequent immobilization of Beta-galactosidase (lactase) have been demonstrated. This immobilized enzyme has been used repeatedly for reducing lactose in whey and skim milk, without any pretreatment, in an efficient and cost-effective manner. The proposed research will be devoted to developing a practical technology in terms of pilot and large scale manufacturing of the MonoCell TM support as well as the immobilized lactase. Process development and commercial application for the hydrolysis of lactose in whey and milk, requiring high efficiency of an enzyme reactor, coupled with high activity of the immobilized enzyme will follow. The use of MonoCell TM in an immobilized enzyme reactor is an entirely original effort and a completely new approach, as is the proposed derivatization of monolithic cellulose itself. This is aimed at developing a much needed and more economically viable application, offering significant health benefits to an estimated 50 million Americans, while particularly widening the profitable utilization of whey. It is anticipated that MonoCell TM material being developed will impact on other commercial applications, which are particularly sensitive to processing costs, e.g. the recovery of several valuable health-related components from whey.