<p>An N-protected-3-acetyl-2-azetidinone-4-carboxylic acid ester has the formula: …<CHEM>… wherein R1 and R2 are protecting groups. …<??>The compounds are prepared by reacting a Schiff base R2-N=CH-COOR1 with diketene in the presence of an imidazole. …<??>In a further step the acetyl group is reduced and the carboxyl protecting group is then removed; the resultant beta -lactam compounds are useful as intermediates for the production of carbapenem or penem derivatives.</p>