Triene antibiotics containing /Mactone-y-lactam bicyclospiro and oxazole rings are unique metabolites produced by Streptomyces spp., such as oxazolomycins1'2) and curromycins.3'4)In the course of our continuing search for novel antimicrobial agents from microorganisms, an actinomycete strain Streptomyces sp. isolated from a soil sample collected in Taejon, Korea, was found to produce a new antibacterial 16-methyloxazolomycin (1). In this paper, we describe the production, isolation, structural elucidation and biological activities of 1. The strain was cultured in the seed mediumconsisting of glucose 2%, starch 1%, soybean flour 2.5%, yeast extract 0.4%, NaCl 0.2%, K2HPO4 0.005% and beef extract 0.1% (adjusted to pH 7.3 before sterilization).The seed culture was carried out on a rotary shaker (250rpm) at 28°C for 24 hours in 500-ml Erlenmeyer flasks containing 100ml of the seed medium. Then, the seed culture (100ml) was inoculated to a 50-liter jar fermenter containing 10 liters of the production medium (antifoam 0.08%). Fermentation was carried out at 27°C for 4 days with aeration (10 liters/minute) under constant agitation (250 rpm).The isolation of 16-methyloxazolomycin was guided by the use of Bacillus subtilis IAM1069 as a test organism. The culture broth was centrifuged to separate the mycelial cake. The mycelial cake was stirred overnight in 70% aqueous acetone (5 liters) and filtered. The filtrate was concentrated in vacuo to remove the organic solvent, DEC. 1997 resulting in an aqueous solution.