In order to convert cellulosic material to ethanol by single step process a chemofusion method has been followed between protoplasts of Trichoderma reesei, QM 9414, and the spheroplasts of Saccharomyces cerevisiae, NCIM 3288, in the author's laboratory. The fusion was a success and it was observed that endoglucanase was the key enzyme in the success of the fusion. In the present study, characterization of the fusants based on the endoglucanase synthesis, its localization and the distribution in the cells are described and compared with that of Trichoderma reesei, QM 9414, (wild type).