A screening of endophytic fungi isolated from Mediterranean plants rendered a mycelium-bound lipase from a strain of Rhizopus oryzae that catalyzed the esterification of fatty acids in isooctane. The influence of various factors (water content, temperature, and pH) on ester synthesis was investigated. Catalytic activity was inversely correlated with water content. This enzyme was active over the entire pH range studied, from pH 3 to pH 8, and activity was maximal at pH 4 and pH 7. The enzyme was thermostable, with maximal activity at 60 degrees C.