The effect of subinhibitory concetrations of penicillin on a strain of streptococcus belonging to Lancefield group G was studied. Production of the group-specific antigen and extra- cellular hyaluronidase by drug-exposed cells were examined. At all concentrations levels a higher amount of group-specific antigen was extracted from cells and increases of up to 1400% in the specific activity of hyaluronidase were determined in culture supernates. The higher increase in the expression of both antigens was observed at 1/2 MIC.