Ethanol at a concentration of 2% (v/v) was used as the sole carbon source for pigment production by Monascus purpureus, and the specific pigment production was higher than that obtained with cultivation on maltose. The type of nitrogen source was shown to be of crucial significance in pigment formation : ammonium chloride and ammonium hydroxide supported biosynthesis of orange pigments, amino acids supported biosynthesis of both yellow and red pigments, whereas yellow pigments prevailed in extracts from cultures grown on polypeptone. It was also found that two-stage cultivation using maltose and ethanol in the first and second stages, respectively, may be useful to increase the efficiency of ethanol utilization for pigment production.