NOVELTY - Producing terpenes in fungi, comprises (a) providing a modified terpene biosynthetic gene cluster inside a host cell, where the gene cluster has naturally occurring terpene biosynthetic genes and promoters, (b) providing a transcription factor inside the host cell to operably linked to one of the natural or modified promoters, (c) cultivating the host in conditions allowing the expression of the transcription factor activating the cluster, and (d) optionally recovering the produced terpene product.    USE - The process is useful for producing terpenes in fungi, where the terpenes: includes a terpenoid including monoterpene, sesquiterpene, diterpene, hemiterpene, triterpene and tetraterpene, gamma - terpinene, limonene, cymene, cineol, alpha -farnesene, amorphadiene, cadinene, caryophyllene, bisabolene, a taxadiene, kaurene, fusicoccadiene, casbene and abietadiene (all claimed); and are useful as drugs or precursors (including antimalarial and anticancer drugs), bioactive compounds, jet fuel components, and chemicals in pharmaceutical and industrial applications. No biological data given.    ADVANTAGE - The process economically prepares terpenes with high yield and without any side products.    DETAILED DESCRIPTION - Producing terpenes in fungi, comprises (a) providing a modified terpene biosynthetic gene cluster inside a host cell, where the gene cluster has naturally occurring terpene biosynthetic genes and promoters, and one or more of these genes or promoters have been replaced, truncated or removed, (b) providing a transcription factor inside the host cell so that the transcription factor is operably linked to one of the natural or modified promoters, where the transcription factor activating the terpene biosynthetic gene cluster has terpene biosynthetic genes and regulatory regions operably linked to the genes, (c) cultivating the host in conditions allowing the expression of the transcription factor activating the cluster, and (d) optionally recovering the produced terpene product. INDEPENDENT CLAIMS are included for: (1) terpene biosynthetic gene cluster comprising the genes putatively encoding (A) zinc(II)2Cys6-type transcription factor (AN1599), monoterpene, sesquiterpene or diterpene synthase operably linked to the regulatory regions of AN1594, 3-hydroxy-3-methyl-glutaryl-coacetyl A (HMG-CoA) reductase (AN1593) and geranylgeranyl diphosphate (GGPP) synthase (AN1592) operably linked to the regulatory regions of AN1592, (B) optionally translation elongation factor 1-gamma (AN1595), cytochrome P450 (AN 1598), short chain dehydrogenase (AN1596), hypothetical protein with some similarity to methyltransferase (AN1597), where the regulatory regions are operably linked to the genes, and optionally an AAA family ATPase (AN 1591), and (C) regulatory regions operably linked to the genes (A) and (B); (2) use of a monoterpene synthase, inserted in the cluster region of a modified terpene biosynthetic gene cluster having terpene biosynthetic genes and regulatory regions operably linked to the genes, for producing monoterpenes under regulation of the naturally occurring regulatory elements that are activated with the overexpression of AN1599; (3) use of a transcription factor having a sequence of SEQ ID NO: 52 or a sequence showing at least 80% degree of identity to SEQ ID NO: 52 for production of a monoterpene, a sesquiterpene or a diterpene that is different from the ent-pimara-8(14),15-diene naturally produced by the unmodified terpene biosynthetic gene cluster; (4) use of Aspergillus nidulans FGSC A4, A1155 and A772 for producing terpenes; and (5) a fungal production host comprising the modified terpene biosynthetic gene cluster including the transcription factor operably linked to a promoter, where the sequences are not defined here may be found at ftp://ftp.wipo.int/pub/published-pct-sequences/publication.