Parametric optimisation of lipase from Aspergillus terreus yielded 7780 U/l in a medium containing corn oil (2% v/v) and casein (0.1% w/v). Maximum production was observed at pH 9.0 and at 37 degrees C in 96 h. Secretion of lipase was increased by Ca2+ and Mg2+ ions. The enzyme has good potential for synthesis of fatty acid esters of sugars, sugar alcohols, aliphatic alcohols and ascorbic acid which are industrially important. (C) 2000 Elsevier Science Ltd. All rights reserved.