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A medium containing meat extract and fructose (1%) has been optimized for production of extra-cellular and alkaline αamylase from Bacillus sp. AB 04. The crude enzyme showed maximum activity at pH 8 with optimum temperature of 40oC with more than 75% activity in range of 50-80oC. The enzyme retained more than 94% of activity after 5 h of incubation at optimum pH and stable in the pH range of 7-10. Ca+ 2 and Co+ 2 act as strong activator of this enzyme. AB04 α-amylase rapidly hydrolyzed starch resulting in the formation of glucose, maltose and other oligosaccharides.