An extracellular polysaccharide (EPS) prepared from SM-1, a mucoidal mutant of Rhodococcus rhodochrous ATCC 12674 was found to absorb and retain moisture in both dry and high-temperature environments. The EPS absorbed more than 120% and 17% of its weight in moisture under the conditions of 32% and 11% relative humidity, respectively, representing much higher absorption than that of known moisture absorbents such as silica gel, glycerol, and hyaluronic acid. The SM-1 EPS is an acidic polysaccharide containing D-galactose, D-glucose, L-fucose, and D-glucuronic acid at a molar ratio of 6: 3: 2: 4. In addition, 1.2% (W/W) stearic acid, 2.3% (W/W) palmitic acid, and 10.3% (W/W) pyruvic acid were also contained in the SM-1 EPS. These evidences indicate that the SM-1 EPS is a novel moistureabsorbing biopolymer.