This invention provides a novel endophytic fungus, Muscodor, that produces
a mixture of volatile antibiotics with activity on specific plant pathogens, bacteria,
nemotodes and insects. Also provided is a method for treating or protecting plants,
soil and seeds from microbial infections comprising applying an effective amount
of a volatile antibiotic producing Muscodor sp. The invention also relates
to fungicidal, bactericidal, insecticidal and nematicidal compositions comprising
this novel Muscodor strain and the antibiotics and metabolites produced
by this strain either alone, or in combination with other chemical and biological
pesticides. Also provided is a method for identifying and isolating related gas
producing fungi.