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The phospholipase activity of seventy-seven isolates of Candida species isolated from the sputum of patients with chronic lung disease were tested. Sixty out of seventy-seven strains (77.9%) were found to produce phospholipases. The degree of phospholipase activity (Pz value) varied from 0.3 to 0.9. Production of this extracellular enzyme may play a pathogenic role.