During the course of our screening for antifungal metabolites, we have isolated two new compounds L970843 (1) and its stereo isomer L970844 (2) from an unidentified fungal species HIL Y-903146. Herein, we report the production, isolation, structure elucidation and biological properties of 1 and 2. Literature survey revealed that 1 and 2 are the first pentahydro analogs of xanthocillin class.