We have constructed a Saccharomyces cerevisiae strain displaying glucoamylase from Rhizopus oryzae on its cell surface, which could grow on soluble starch as the sole source of carbon and energy (Murai et al., Appl. Environ. Microbiol., 63, 1362-1366, 1997). This system was introduced into a yeast strain, G-1315, with a high fermentation ability, and the direct production of ethanol from corn was examined. When a transformant of strain G-1315 displaying glucoamylase on the cell surface was cultivated statically at 27 degrees C for 7 d using ground raw corn as starchy material, ethanol was produced at a concentration of 2.34% (w/w). Addition of an alpha-amylase reagent (Termamil) to liquefy the ground corn prior to fermentation improved the ethanol production to 5.32% (w/w), which was comparable to that of transformants secreting glucoamylase. These results demonstrate that the "arming yeast" developed by a cell surface engineering technique and its further improvement is applicable to direct fermentation of starchy materials.