Streptomyces michiganensis strain Tü 1074, was isolated from a Tunesian soil sample and produces in liquid medium an antibiotic active pigment complex. Besides mitomycin A the separation of this complex yielded a nonactive phenoxazone, which hitherto has not been described in the literature. In contrary to all known phenoxazones from microorganisms the new compound lacks a 2-amino-function. The production of this phenoxazone could be enhanced by optimizing the conditions of fermentation.