PCT No. PCT/IB96/00820 Sec. 371 Date Oct. 31, 1997 Sec. 102(e) Date Oct. 31, 1997 PCT Filed Oct. 2, 1995 PCT Pub. No. WO96/16053 PCT Pub. Date May 30, 1996This invention provides processes for producing phthalide compounds which comprise cultivating Phanerochaete avelutina FERM BP-4787 and then isolating phthalide compounds from the fermentation broth.