Strain KMM 457 of Bacillus subtilis was isolated from a frozen sample of the soft coral Sarcophyton sp. The samples were collected in 1989 in the South China Sea near the Vietnam Shore during an expedition on the board of R/V "Akademik Oparin". Metabolites of the isolate were investigated and it was found to produce a number of physiologically active compounds. One of them designated as OGA showed fungicidal activity. By the physicochemical properties it was referred to the group of iturins. The comparison with the described antibiotics of the iturin group suggested that it was a new representative of the iturin group.