A new bioactive bromine-containing oxindole alkaloid, matemone (1), was isolated from the Indian Ocean sponge Iotrochota purpurea, together with the known 6-bromoindole-3-carbaldehyde. The structures were elucidated on the basis of spectral and chemical data. Compound 1 shows mild cytotoxicity against three cancer cell lines and marginal antibacterial activity against Staphyloccocus aureus. DNA intercalant screening demonstrated DNA interactions with 1. Both compounds inhibit division of sea-urchin eggs.