Staphylococcus sp. RRL1 and Kluyveromyces marxianus ATCC 52466 produced extra-cellular inulinase when grown in liquid medium containing inulin as the sole carbon source and the former produced about 30% more enzyme activity. The highest inulinase activity (618 U/liter) from Staphylococcus sp. was obtained in a medium with an initial pH, temperature, agitation and the size of inoculum of 6.5, 37 degrees C, 150 rpm and 4%, respectively. Kluyveromyces marxianus ATCC 52466 gave highest inulinase activity (470.4 U/liter) in a medium with an initial pH, temperature, agitation and size of inoculum as 6.0, 30 degrees C, 150 rpm and 4%, respectively. The Staphylococcus sp. seems to be a new and useful source of inulinase.