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Typical Experimental Procedure: The clay/zeolite catalysts used in this work were activated at 200 °C for 3 h. To a solution containing α-diazo ketone 1a (100 mg) in commercial grade dichloromethane was added zeolite H-Y (175 mg) or montmorillonite clay K-10 (175 mg) and the mixture stirred at r.t. or ultrasonicated. Slow nitrogen evolution took place and the reaction mixture was followed by TLC until disappearance of starting material. The reaction mixture was then filtered, concentrated under reduced pressure and purified by silica gel column chromatography to afford product 2a. All novel compounds gave satisfactory spectral data consistent with their structures. Selected spectral data of 5-Hydroxy-4,4,5-trimethyldihydrofuran-3-one (8): colourless solid, mp 63-65 ºC; IR (KBr): 3372, 2998, 2978, 2913, 2934, 1744, 1704, 1471, 1453, 1396, 1121, 1039, 932, 851 cm-1; 1H NMR (200 MHz, CDCl3): δ = 4.14, (d, 1 H, J = 16.6 Hz, OCH2), 4.06 (d, 1 H, J = 16.6 Hz, OCH2), 2.72 (s, 1 H, OH), 1.50 (s, 3 H, CH3), 1.09 (s, 3 H, CH3), 1.05 (s, 3 H, CH3); 13C NMR (50.3 MHz, CDCl3): δ = 16.5 (CH3), 22.0 (CH3), 22.3 (CH3), 51.1 (quat-C), 67.9 (OCH2), 107.4 (quat-C), 218.6 (C=O); MS: m/z = 144 [M+]; Anal. Calcd for C7H12O3: C, 58.31; H, 8.39. Found: C, 58.40; H, 8.44. 2-Methoxy-1-(4-methoxyphenyl)ethanone (11d): colourless thick liquid; IR(neat): 3059, 2934, 2842, 1776, 1691, 1602, 1576, 1512, 1462, 1422, 1312, 1259, 1175, 1128, 1026 cm-1; 1H NMR (200 MHz, CDCl3): δ = 7.93 (d, 2 H, J = 8.6 Hz, Arom-H), 6.93 (d, 2 H, J = 8.6 Hz, Arom-H), 4.65 (s, 2 H, OCH2), 3.87 (s, 3 H, OCH3), 3.50 (s, 3 H, OCH3); 13C NMR (50.3 MHz, CDCl3): δ = 55.9 (OCH3), 59.8 (OCH3), 75.5 (OCH2), 114.0 (=CH), 130.6 (=CH), 133.2 (quat-C), 164.2 (quat-C), 195.1 (C=O); MS: m/z = 180 [M+]; Anal. Calcd for C10H12O3: C, 66.65; H, 6.71. Found: C, 66.72; H, 6.65.