Acetobacter xylinum IFO 13693 was selected as the best cellulose-producing bacterium among 41 strains belonging to the genus Acetobacter and Agrobacterium. Cellulose was found to be produced at the liquid surface in static liquid cultivation. The rate of cellulose production depended proportionally on the surface-area of the culture medium and was unaffected by the depth and volume of the medium. The optimum pH for cellulose production was 4.0 to 6.0. Glucose, fructose and glycerol were preferred carbon sources for cellulose production. The yield of cellulose, relative to the glucose consumed, decreased with an increase in initial glucose concentration, and gluconic acid accumulated at a high initial glucose concentration. The decrease in cellulose yield could be due to some glucose being metabolized to gluconic acid. However, the accumulated gluconic acid did not affect cellulose production. The culture conditions of the bacterium for cellulose production were optimized. The maximum production rate of cellulose was 36 g/d.m2, with a yield of 100% for added glucose under the optimal conditions.