Selective culture of actinomycetes from soil microbes and their antibiotic producing characters by agar-disk method were examined. Some of the organisms which produced antibiotics on agar disk did not produce antibiotics in liquid culture. Further examination indicated that production of antibiotic was dependent on the composition of medium. Many streptomycestes produced antibacterial substances in tryptic soy broth but others produced antifungal antibiotics in V-8 broth. Production of antibacterial substances by Streptomyces sp. was also dependent on the medium composition.