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Summary: Evidence for genetic transformation in Neurospora crassa is based on the observations that allo-DNA has a specific effect in producing transformants which is abolished by DNAase treatment and that iso-DNA is not effective in transformation. Here, unambiguous evidence for genetic transformation is provided by transfer of a temperature-sensitive inositol requirement from a donor to a recipient strain. Data provided also suggest the role of growth conditions and the involvement of a nuclease gene in the DNA uptake and transformation of N. crassa.