The formation of ethanol by the polymorphic fungus Aureobasidium pullulans was examined under a range of culture pH values and aeration conditions. Although culture pH had a profound effect on fungal morphology, with a greatly increased proportion of the biomass in the unicellular (yeast-like) form at pH 6.5, there appeared to be no direct link between morphological form and ethanol formation. The levels of ethanol noted may have influenced the morphology. Cessation of aeration rapidly led to a halt in growth and exopolysaccharide synthesis, while ethanol synthesis proceeded rapidly. The ethanol formed could be re-oxidised under conditions where the available carbon source was depleted. Two distinct exopolysaccharides of different molecular weights were recovered from the culture fluids. Overall, the molecular weight of both declined with process time.