TECHNOLOGY FOCUS - INORGANIC CHEMISTRY - Preferred Components: The base is selected from carbonates such as sodium carbonate or potassium carbonate; bicarbonates such as sodium bicarbonate or potassium bicarbonate; hydroxides such as sodium hydroxide, potassium hydroxide or ammonium hydroxide; and alkali amides such as sodium amide or potassium amide (preferably potassium carbonate).    TECHNOLOGY FOCUS - ORGANIC CHEMISTRY - Preferred Process: The step (i) and step (ii) are optionally carried out in the presence of potassium iodide. The pressure in step (ii) is maintained at 1-2 kg/cm2. Preferred Components: The phase transfer catalyst is selected from benzyltrimethylammonium chloride, hexadecyltributylphosphonium bromide, methyltrioctylammonium chloride and tertiary butyl ammonium bromide (preferably tertiary butyl ammonium bromide). The solvents in steps (i) and (ii) are selected from nitriles such as acetonitrile; alcohols such as methanol, ethanol or isopropanol; ketones such as diethyl ketone, dimethyl ketone, ethyl methyl ketone or methyl isobutyl ketone; esters such as ethyl acetate or methyl acetate; ethers such dioxane or tetrahydrofuran; hydrocarbons such as toluene; and polar aprotic solvents such as dimethylformamide, dimethyl sulfoxide, sulfolanes and/or 2-pyrrolidinone. The solvent for step (i) is acetonitrile. The solvent for step (ii) is methanol. ACTIVITY - Neuroleptic. No biological data given.    MECHANISM OF ACTION - None given.    EXAMPLE - Acetonitrile (1 l) was charged to 4-hydroxy-3-methoxy acetophenone (IV) (0.5 kg). 1-Bromo-3-chloropropane (V) (1.89 kg) was added to the mixture and was stirred followed by addition of tetrabutylammonium bromide (TBAB) (0.030 kg). Potassium carbonate (0.78 kg was added to the mixture and heated to 80 degrees C. The mixture was cooled and filtered. The solid obtained was charged to dichloromethane (2 l) and stirred. The mixture was heated to 40-45 degrees C and distilled. After work up, 1-(4-(3-chloro/bromo propoxy)-3-methoxyphenyl) ethanone (III) (0.779 kg) was obtained. 6-Fluoro-3-(piperidinyl-4-yl)-1,2-benzisoxazole hydrochloride (II) (0.6 kg) and compound (III) (0.68 kg) were added to methanol (6 l) in autoclave. To the mixture potassium carbonate (0.39 kg) was added followed by the addition of TBAB (0.03 kg). The reaction was maintained in the autoclave at 60-65 degrees C for 15-16 hours. The reaction was then cooled and methanol was distilled out. After work up, iloperidone (0.77 kg) was obtained. Iloperidone (0.750 kg) was charged to methanol (1.688 l). The mixture was heated to reflux temperature. The solution was gradually cooled to 0-5 degrees C. The reaction mixture was maintained for 2 hours and the solid was filtered. The wet solid was washed with chilled methanol at 0-5 degrees C and dried to obtain purified iloperidone (0.71 kg) having purity of 99.25%.