A Gram-positive bacterium, Bacillus circulans, isolated from soil was found to produce an enzyme hydrolyzing nigeran (mycodextran, alternating alpha-1,3- and alpha-1,4-linked glucan). The molecular weight of the purified enzyme was 120,000 and its isoelectric point was 8.30. The optimum pH and temperature for the enzyme activity were 6.0 and 50 degrees C, respectively. The enzyme was stable in the pH range from 6.0 to 7.0 and up to 50 degrees C. The K-m (mg/ml) for nigeran was 1.37. The enzyme specifically hydrolyzed the nigeran into nigerose and nigeran tetrasaccharide by an endo-type action, indicating that it is a mycodextranase (EC 3.2.1.61) cleaving only the alpha-1,4-glucosidic linkages in nigeran. The N-terminal amino acid sequence of the purified enzyme of B. circulans (APTVYEAESAAKTGGV) was different from that of the mycodexstranase purified from Streptomyces sp. J-13-3 (XDPGDPTDPDPSGVGATLPF).