SummaryThe occurrence, isolation, and characteristics of an aerobic, mesophilic, spore-forming bacillus capable of separating wool and hair into their constituent cuticular and cortical cells are described.The organism was isolated from the contents of experimentally induced dermoid cysts implanted on the mid-lateral region of a single sheep. Examination of wool samples from these cysts showed the wool to be degraded, as evidenced by the presence of numerous free cortical and cuticular cells. The contents of experimental cysts on other sheep showed no evidence of bacterial contamination 13 weeks after implantation, and wool samples from these cysts were normal.Disruption of wool fibres occurred in vitro and in vivo. The evidence suggests that the organism is capable of attacking native wool protein.In the case of this one sheep a comparison is drawn between the environment necessary for the development of "pink rot" and the intracystic environment of the wool.It is also suggested that the technique of cyst implantation could be developed for the production of sterile native (untreated) wool and sterile adult skin.