The isolated cell walls of P. verrucosa are black, and a black pigment is excreted by the mycelial phase during growth in liquid shaken culture. When extracted from the cell walls with alkaline peroxide reagent, the pigment accounts for 18·6% of the mycelial wall dry weight. The extracted cell wall pigment is soluble in aqueous solution above pH 7, is non-dialyzable and contains protein, whose amino acid composition was analyzed. The exocellular pigment is produced in amounts of 108 mg per liter after 7 days of growth. After lyophilization, it is insoluble in aqueous solutions between pH 1–14. It also contains protein and has associated carbohydrate, about 8% anthrone-positive material. Cell wall pigment eluted as a single peak on Sephadex G 200. Alkali fusion and permanganate oxidation studies on the purified chromophore of the exopigment suggest a catechol base in the polymer. A cytoplasmic pigment synthesizing enzyme was found.