Fructooligosaccharide (FOS) production was carried out using fructosyl transferase (FTase) produced by Aspergillus oryzae CFR 202 under submerged fermentation conditions. The pellets of A. oryzae CFR 202 obtained after 48 It of fermentation were supplemented with fresh media after every 24 h and fermentation was carried out to produce FTase. FTase so obtained was used to produce FOS using 60% sucrose as substrate at 55 degreesC at pH 5.15. FTase activity was maintained in the range of 15 +/- 2 U/ml/min up to six recycles. FOS yields were maintained at 53% up to 6th cycle. Recycling of pellets could not be carried out after 6th cycle due to disintegration. The system is advantageous and economical in that it does not require supplementation of any additional nutrients nor it requires the development of fresh inoculum. (C) 2004 Elsevier Ltd. All fights reserved.