The newly isolated Humicola strain secreted cellulases in the culture medium supplemented with 1 Yo water hyacinth as carbon source. Of the nitrogen sources investigated, ammonium sulphate (0.50/,) and yeast extract (4%) produced the highest amount of the enzyme complex. Maximal cellulases were synthesized at pH 6.0 and temperature 35 "C. The culture filtrate from this organism was used to study the saccharification of lignocellulosic wastes and adsorption onto avicel. About 48% saccharification was achieved with rice straw after a period of 24 h hydrolysis. The endoglucanase in the culture filtrate was adsorbed onto avicel to the extent of 13%.Cellulose is degraded by the synergistic action of three enzymes namely exoglucanase, endoglucanase and P-glucosidase. They are produced by microorganisms, plants and animals. Cellulolytic enzymes isolated from various sources differ in their molecular characteristics, adsorbability onto cellulose, catalytic activity and substrate specificity (RYU and MANDELS 1980). Microorganisms capable of producing high level of cellulases are important in view of practical utilization of cellulosic biomass. Currently there is world wide interest for the isolation of new cellulolytic microorganisms having properties such as higher specific activities, resistance to product inhibition and thermal inactivation. However, there are few reports on the production of cellulases from Humicola species (COUGHLAN 1985). YOSHIOKA et al. (1982) for the first time have demonstrated the presence of two types of endoglucanase in Humicola grisea, a novel type of avicel adsorbable endoglucanase that could intensively disintegrate avicel and the ordinary type of avicel non-adsorbable, non-disintegrating endoglucanase. Later, similar findings have been reported by SOUNDAR and CHANDRA (1988) with respect to the endoglucanase synthesized by Humicolagrisea Fb.The isolation and characterization of a new strain of cellulotytic Humicola spp. H, has been reported by SARKER et al. (1990). The present communication describes the cost effective production of cellulases, subsequent saccharification of lignocellulosic wastes and the preliminary studies related to the presence of an avicel adsorbable endoglucanase from this organism. Materials and methodsOrganism and growth: Humicola spp. H, isolated in our laboratory (SARKER et al. 1990) was used in the present study. The basal medium had the following composition (g .l-'): KH,P04, 1.0; MgSO, 7 H,O, 0.5; (NH,),SO,, 5.0; yeast extract, 4.0; water hyacinth 10.0 and 2.0 ml trace element solution (MANDELS and REESE 1957). The pH of the medium was adjusted to 6.0. Fermentation medium (50 ml) in 250 ml flask was inoculated with spores using 15 day old slant culture and incubated at 35 "C on a rotatary shaker (I 50 rpm/min). The stock culture was maintained at 4 "C on potato-dextrose agar slants and sub-cultured once in every two months.