A new species in the Hyphomycete genusPhialocephalais described. The new speciesPhialocephala virensproduces an intense greyish green to turquoise colour on certain media and has smaller conidia, shorter phialides, and shorter conidiophores than previously describedPhialocephalaspecies. Its tolerance to low levels of the antibiotic cycloheximide suggests the fungus may have affinities with species ofOphiostoma. Cultures of the fungus cause a bright green stain when inoculated onto sapwood of some conifers.Key words:Phialocephala virens, new species, Hyphomycetes, sapstain.
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