A bacterial strain, Bacillus megaterium VUMB-109, has been isolated and identified which produces salt-tolerant, thermostable amylase (16 U/ml culture filtrate). Cultural conditions such as carbon and nitrogen sources, metal ions, temperature and pH have been optimized for enzyme production. The partially purified enzyme was active over a wide range of pH (4.5-10) and exhibited maximum activity at 93°C, retaining 90% original activity at 100°C. Partially purified enzyme was stable at 70°C for 60 min. The enzyme was stable in NaCl up to 5M over 24 h without loosing its original activity. © 1997 Akadémiai Kiadó.