Requires Mg2+?for activity. The displacement of the diphosphate group of farnesyl diphosphate occurs with retention of configuration [1]. In the soil-dwelling bacterium?Streptomyces coelicolor?A3(2), the product of this reaction is used by EC?1.14.13.106,?epi-isozizaene 5-monooxygenase, to produce the sesquiterpene antibiotic albaflavenone [2].