THE BACILLUS megaterium exopolysaccharide (EPS) producer was isolated from the Egyptian soil and identified by molecular biology technique (16S rRNA). It was found that the exopolysaccharide showed a high yield after 72 hr, with an initial pH of 5.0, in 250 ml Erlenmeyer flasks containing 50 ml of culture, the medium having 2% sucrose as a sole carbon source. The yeast extract (0.1%) and ammonium chloride (0.1%) were the best organic and inorganic nitrogen source, respectively, as they gave the maximum EPS production. Optimum incubation temperature was found to be 35 C. Pretreated molasses from sugarcane and sugarbeet were used as a carbon source and they gave a considerable yield (~ tow fold) in relation to sucrose. The pretreatment of molasses by sulfuric acid showed a high yield of polysaccharide and maximum yield coefficient.