Two new quinazoline alkaloids, 2-(2-carboxyethyl)-8-hydroxyquinazolin-4(3H)-one (1) and 2-(2-carboxyethyl)6-hydroxyquinazolin-4(3H)-one (2), along with the previously synthesized 2-(4-hydroxyphenyl)quinazolin4(3H)-one (3), were isolated from the solid cultures of Streptomyces michiganensis strain SC0642. Their structures were elucidated by spectroscopic methods.