A component of the microcrystalline cellulose (Avicel)-hydrolyzing enzyme produced by a fungal strain, Y-94, tentatively called Avicelase II, was purified by several kinds of column chromatography followed by chromatofocusing with Polybuffer anion exchanger (PBE 94), BioGel A0.5 m gel filtration, electrophoresis on polyacrylamide gel and disc isoelectric focusing (IEF). The molecular weight of the enzyme was estimated to be 68,000 by the SDS-polyacrylamide gel method and 56,000 by Bio-Gel A0.5 m gel filtration, and its isoelectric point was found to be around 4.4 by the chromatofocusing and disc IEF methods. The optimum pH and temperature for Avicel hydrolysis were 5.3 and 62°C, respectively. The enzyme was stable between pH 4.1 and 6.0 at 4°C for 24hr, and up to 61°C for lOmin. Heavy metal ions such as Cu2+ and Hg2+ strongly inactivated the enzyme. A highly purified enzyme preparation showed hydrolyzing activities towards Avicel, xylan, carboxylmethyl cellulose (CMC) (activity ratio of 100: 50 : 20, respectively) and acidswollen cellulose. By the PAS method, staining glycoprotein with Shiffs reagent and periodic acid, the enzyme seemed to be a glycoprotein containing some carbohydrate in its structure. Avicelase II tended to show a higher affinity towards cellooligosaccharides of high molecular weight. The enzyme hydrolyzed Avicel and acid-swollen cellulose, and produced trace amounts of cellotriose and significant quantities of glucose. In addition, the enzyme is able to act on the internal glycosidic bonds of CMCand xylan. Judging from the results, it appears that Avicelase II should be classified as a member of the specific endoglucanases rather than as an exoglucanase.As described in the previous paper,1} a mesophilic fungus (Y-94) isolated from soil produces a great amount of a cellulolytic enzyme in the culture filtrate, and the enzyme exhibits higher thermostability and hydrolysis limitation towards cellulosic substances than those of other mesophiles belonging to the genera, Trichoderma, Aspergillus, Penicillium and so on. This indicates that the cellulolytic enzyme system produced by this fungus will exhibit high potential when it is applied to the hydrolysis of the vegetable biomass.