Catalyzes the rearrangement of hydroxylaminobenzene to 2-aminophenol. N-phenylhydroxylamine = 2-aminophenol Addition of ZnSO(4) decreases the activity to 70%. Could be membrane-associated. Mutants can still grow on nitrobenzene. Not expressed in strain JS45 under standard conditions, but is functional when expressed in E.coli.