As the result of an undercover investigation University Police Services arrested two individuals yesterday on drug related charges, police said.

The two individuals, Gustaf B. Karlson of Glen Rock, N.J. and Peter Zaranski of 612 McKean Hall, were arrested and arraigned before District Justice Clifford Yorks and are currently being held in Centre County Prison, police said.

Karlson and Zaranski were arraigned on charges of possession of marijuana, delivery of marijuana and criminal conspiracy, police said. Karlson was also charged with possession and delivery of psilocybin mushrooms, police said.

Karlson is in jail in lieu of $400,000 bail while Zaranski's bail was set at $250,000 bail, police said. The two alleged drug dealers have a preliminary hearing scheduled at 9 a.m. on Feb. 8, police said.

On Jan. 27 Karlson and Zaranski allegedly sold a half pound of marijuana to an undercover police officer for $1,100, police said. Yesterday undercover police agents also bought one pound of marijuana and a quarter pound of psilocybin mushrooms from Karlson, police said. Police said the second sale totaled $2,650.

In addition to the drugs the police also seized Karlson's vehicle during the arrest, police said.

The University police said they were assisted in this investigation by agents of the Bureau of Narcotic Investigations, the State College Police Department and the Centre County Drug Detective.