A new benzoic acid, 2-(2-hydroxypropanamido)benzoic acid (1), along with three known compounds, cyclo- (Pro-Leu), cyclo-(4-hydroxyl-Pro-Phe), and (22E,24R)-ergosta-5,7,22-triene-3-ol, were isolated from the fermentation broth of Penicillium chrysogenum. The structure of compound 1 was established by comprehensive analysis of the spectral data, especially 2D NMR spectra. Compound 1 showed remarkable anti-inflammatory and analgesic activities when administered at 100 mg/kg, but it exhibited no ulcerogenic effect.