The isolation of a red pigment from an Aspergillus parasiticus mutant obtained by 366 nm u.v. light treatment of A. parasiticus NRRL 2999 is described. Studies of conversion in aflatoxin B1 and G1 suggest that the red pigment could be a possible new intermediate in the aflatoxin biosynthetic pathway not described to date, and this has been verified by studies in gas chromatography/mass spectrometry. The solubility and stability characteristics under refrigeration storage, and the influence of the temperature and the pH on its production by the A. parasiticus mutant were also studied. It grew best at 30 degrees C and pH 6. The red pigment was most soluble in ethyl acetate. The results obtained in water are emphasized where there was high stability.