A new method for the production of isomalto-oligosaccharides from maltose was investigated using intact cells of Aureobasidium pullulaans which had been known to produce fructo-oligosaccharides. The cells showed transglucosylation activity producing isomalto-oligosaccharides at high concentrations of maltose, while they showed a hydrolytic activity at low concentrations of substrate when cultivated at $25^{circ}C$. The optimum reaction conditions for the isomalto-oligosaccharide production were as follows: substrate concentration, 500g/l maltose; pH, 4.5; temperature, $65^{circ}C$; cell dosage, 10 unit per gram substrate. Under optimized conditions, the maximum yield of isomalto-oligosaccharides achieved was around 48% (w/w). At the early period of reaction, panose was selectively produced from maltose, and thereafter isomaltotriose was synthesized by utilizing panose as a substrate when maltose consumption was discontinued.