  The highest weight modules of the chiral algebra of orthogonal WZW models at
level one possess a realization in fermionic representation spaces; the
Kac-Moody and Virasoro generators are represented as unbounded limits of even
CAR algebras. It is shown that the representation theory of the underlying even
CAR algebras reproduces precisely the sectors of the chiral algebra. This fact
allows to develop a theory of local von Neumann algebras on the punctured
circle, fitting nicely in the Doplicher-Haag-Roberts framework. The relevant
localized endomorphisms which generate the charged sectors are explicitly
constructed by means of Bogoliubov transformations. Using CAR theory, the
fusion rules in terms of sector equivalence classes are proven.
