In the course of screening for antibacterial antibiotics from actinomycetes, a new antibiotic OM-704 A has been isolated from the fermentation broth of Streptomyces sp. OM-704, a soil isolate. It exhibits antibacterial activities against Gram-positive bacteria. The antibiotic (mp 291-295°C, C20H22N2O4) is a neutral quinoid compound. The present paper deals with the taxonomy of strain OM-704 and the fermentation, isolation, biological and physicochemical properties of antibiotic OM-704 A.