Chitin, an insoluble linear polysaccharide consisting of repeated units of beta-1,4-N-acetylgucosamine, is common as a structural polymer in crustaceans, arthropods, fungi, and parasitic nematodes. Its annual production surpasses 1011 metric tons per year and is regarded as waste product i.e. sea food industry. This marine biopolymer can be modified to chitosan by changing between 0 to 100 % of the N-acetyl groups to free amines and both chitin and chitosan can be cleaved into chito-oligosaccharides (CHOS ). CHOS has been shown to have several beneficial effects and can possibly be used as fungicides, bactericides, hemostatic agents, and inhibitors of tumor growths. The most reliable studies available show that the length of the CHOS (DP), the number of fr ee amine groups vs. N-acetyl groups, and the sequence of these (PA) are of paramount importance in the most observed advantageous biological effects. Having control of these parameters is thus important. Although isolation of pure CHOS is not trivial, we have developed enzyme technology for the degradation of chitosan that yields CHOS of exact DP and an enrichment of desired FA and PA. This coupled with standard chromatographic isolation methods, gives us access to specific CHOS that can be tested for bio logical activity of interest. The goal of this project is to up-scale and develop new favorable applications for CHOS and to produce IP in areas that have clear commercial value and well-defined ownership. The application area to be tested is antifungal infections in humans. The project is highly successful if we manage to realize the commercial potential.