<p>The present invention relates to a method for producing terpenes in fungi, wherein a terpene biosynthetic gene cluster having terpene biosynthetic genes and regulatory regions operably linked to said genes is activated. The invention relates also to a terpene biosynthetic gene cluster and regulatory regions of such terpene biosynthetic gene cluster usable is production of terpenes, use of regulator for regulating the terpene production and use of Aspergillus nidulans FGSC A4 for producing terpenes. The method of invention provides higher yields of enriched terpene product without essential amount of side-products.</p>