In our screening programs for novel antibacterial antibiotics of microbial origin, we found an oxazoline type antibiotic in the cultural broth of the producing organism, designated MJ502-77F8 and belonging to a rare Actinomycetes group. In this paper, we report on the preliminary taxonomical characteristics of the producing strain, production, isolation, structural elucidation, and biological activity of this antibiotic, herein referred to as antibiotic 1.