Reaction of 2-aminothiophenols and phenylglicidic esters gave 2-hydroxy-3- (2-aminophenylthio) -3-phenyl-propionic esters (VI) and 2-phenyl-3-hydroxy-2, 3-dihydro-1, 5-benzothiazepin-4 (5H) -ones (VII). Hydrolysis of the amino esters (VI) to the amino carboxylic acids (VIII) and cyclization of the amino acids gave satisfactory yield of the cyclic amides (VII). Reaction of 2-nitrothiophenols (XII) and phenylglicidic esters (V) was also studied. Rearrangement of VIIa to 2-benzilidene-3-keto-benzothiazine (XV) was presented.