The present investigation describes the production of lipase by solid-state fermentation. Ten mould cultures were screened for the production of lipases. Rhizopus oligosporous GCBR-3 supported maximum production of lipases (48.0 U/g substrate) under optimum environmental and cultural conditions such as selection of efficient organism from the available microorganisms, selection of almond meal as the best substrate among different substrates, inoculum size, extractants/diluents and incubation period. The organism secreted the enzyme extracellularly. To study the kinetics of enzyme production, the organism was grown under optimum growth conditions for enzyme production. The lipase value supported by the organism and calculated as units per gram substrate per hour was greater than the values reported by other workers. This organism can be exploited for large-scale production of enzyme for commercial purposes. (C) 2002 Published by Elsevier Science Ltd.