An endophytic fungus of Persea indica was identified, on the basis of its anamorphic stage, as Nodulosporium sp. by SEM. Partial sequence analysis of ITS rDNA revealed the identity of the teleomorphic stage of the fungus as Hypoxylon sp. It produces an impressive spectrum of volatile organic compounds (VOCs), most notably 1,8-cineole, 1-methyl-1,4-cyclohexadiene, and tentatively identified (+)-.alpha.-methylene-.alpha.-fenchocamphorone, among many others, most of which are unidentified. Six-day-old cultures of Hypoxylon sp. displayed maximal VOC-antimicrobial activity against Botrytis cinerea, Phytophthora cinnamomi, Cercospora beticola, and Sclerotinia sclerotiorum suggesting that the VOCs may play some role in the biology of the fungus and its survival in its host plant. Media containing starch- or sugar-related substrates best supported VOC production by the fungus. Direct on-line quantification of VOCs was measured by proton transfer mass spectrometry covering a continuous range with optimum VOC production occurred at 6 days at 145 ppmv with a rate of production of 7.65 ppmv/h. This report unequivocally demonstrates that 1,8-cineole (a monoterpene) is produced by a microorganism, which represents a novel and important source of this compound. This monoterpene is an octane derivative and has potential use as a fuel additive as do the other VOCs of this organism. Thus, fungal sourcing of this compound and other VOCs as produced by Hypoxylon sp. greatly expands their potential applications in medicine, industry, and energy production.

A fungal endophyte (NRRL 50072) isolated from Eucryphia cordifolia from Patagonia that produces hydrocarbon derivatives is identified as an Ascocoryne sp. It was classified as Clonostachys rosea (Gliocaldium roseum) strain C-13 = NRRL 50072 primarily based upon its morphological characteristics. The fungus produced slimy clumped conidia on verticillated conidiophores and red-pigmented particles in culture. However, DNA sequence analysis (ITS rDNA) suggested a 99% identity to Ascocoryne sarcoides rather than to fungi assigned to the group of Gliocladium-like anamorphs. Comparative genetic, biological and morphological studies confirmed that the anamorphic stage of an authenticated field-collected culture of Ascocoryne sarcoides AV-70 shares many of the same morphological, and genetic features as NRRL 50072, but the latter is unable to produce synnematal masses unless it is grown on a proper substratum. These data suggest that NRRL 50072 is most closely related to the asexual stage of A. sarcoides, namely a Coryne sp. Serial transfer of the A. sarcoides AV-70 resulted in major cultural changes in the fungus especially in the production of aerial hyphae, pigment production and the number of synnemata being formed. This report appropriately sets the taxonomic framework for further molecular biological and biochemical work on NRRL 50072 and related fungi.