NOVELTY - Use of intermediate compounds comprising N-(4-chloro-1-hydroxy-2-(hydroxymethyl)-4-(4-octylphenyl)butan-2-yl)acetamide (VIIIa), (E)-N-(1-hydroxy-2-(hydroxymethyl)-4-(4-octylphenyl)but-3-en-2-yl)acetamide (IXa), (E)-2-amino-2-(4-octylstyryl)propane-1,3-diol (XIa) and (E)-2-amino-2-(4-octylstyryl)propane-1,3-diol hydrochloride (VIIa) in the preparation of fingolimod hydrochloride (I), is claimed.    USE - The intermediate compounds are useful for the preparation of fingolimod hydrochloride (I) (claimed) which is useful for the treatment of patients with relapsing forms of multiple sclerosis to reduce the frequency of clinical exacerbations and to delay the accumulation of physical disability. No biological data given.    ADVANTAGE - The intermediate compounds provide a simple and commercially feasible environmentally friendly process to prepare (I) with high purity of greater than 99.9%, without using pyrophoric reagents such as lithium aluminum hydride and triethylsilane and column chromatography for purification.    DETAILED DESCRIPTION - Use of intermediate compounds comprising N-(4-chloro-1-hydroxy-2-(hydroxymethyl)-4-(4-octylphenyl)butan-2-yl)acetamide of formula (VIIIa), (E)-N-(1-hydroxy-2-(hydroxymethyl)-4-(4-octylphenyl)but-3-en-2-yl)acetamide of formula (IXa), (E)-2-amino-2-(4-octylstyryl)propane-1,3-diol of formula (XIa) and (E)-2-amino-2-(4-octylstyryl)propane-1,3-diol hydrochloride of formula (VIIa) in the preparation of fingolimod hydrochloride of formula (I), is claimed. An INDEPENDENT CLAIM is also included for preparing (I) comprising: reacting octanoyl chloride with benzene in the presence of aluminum chloride and dichloromethane to give n-octanophenone; catalytically reducing n-octanophenone in the presence of 10% palladium on carbon and methanol to give n-octylbenzene; reacting n-octylbenzene with acetyl chloride in the presence of aluminum chloride and dichloromethane to obtain 4-octyl acetophenone; reacting 4-octyl acetophenone with liquid bromine in dichloromethane to obtain 2-bromo-1-(4-octylphenyl)ethanone; reacting 2-bromo-1-(4-octylphenyl)ethanone with diethyl acetamidomalonate in presence of sodium ethoxide in ethanol to obtain diethyl 2-(2-(4-octylphenyl)-2-oxoethyl)-2-propionylmalonate (IIb); reacting (IIb) with sodium borohydride in a mixture of tetrahydrofuran and ethanol to obtain diethyl 2-(2-hydroxy-2-(4-octylphenyl)ethyl)-2-propionylmalonate (VIIf); treating (VIIf) with hydrochloric acid in isopropyl alcohol or acetone or mixture of aqueous solvents at 20-80 degrees C to give diethyl 2-(2-chloro-2-(4-octylphenyl)ethyl)-2-propionylmalonate (VIIIa); refluxing (VIIIa) in isopropyl alcohol at 20-80 degrees C to give (E)-diethyl 2-(4-octylstyryl)-2-propionylmalonate (IXa); reacting (IXa) with hydrochloric acid in isopropyl alcohol or acetone or mixture of aqueous solvents at 20-80 degrees C to give (E)-diethyl 2-(4-octylstyryl)-2-propionylmalonate hydrochloride (VIIg); and catalytical hydrogenation of (VIIg) in methanol in the presence of palladium on carbon at 25-30 degrees C.