*** 9761407 Akselband This Small Business Innovation Research (SBIR) project addresses novel isolation and culture methods for marine microbial isolates in order to take advantage of the vast diversity of ocean environments. To date, little study has been directed toward natural products from marine bacteria due to difficulties isolating and culturing producing organisms. It is estimated that fewer than 5% of marine bacteria can be cultured and isolated using standard methods. Phase I will develop a method for isolating, culturing, and assaying marine microorganisms for active substances. Single cell encapsulation will be combined with high-throughput screening methods to allow analysis of small subpopulations of cells producing substances for therapeutic and industrial products. This technique will allow cloning of slow growing organisms that can not be isolated using other methods. Development of new isolation methods is expected to enhance rapid automated natural product screening of marine as well as terrestrial samples. Marine organisms represent a vast potential source of novel bioactive metabolites. Improved isolation, culturing, and screening methods will permit commercial screening for useful therapeutic and industrial products. ***