Hairy root cultures of Glycyrrhiza glabra producing considerable amounts of phenolic compounds were successfully established by using Agrobacterium strain C58C18(pRT GUS 104). The effect of phosphate, ammonia, nitrate and ferric-EDTA concentrations of culture medium on growth and total phenolics production of the cultures were studied. By employing statistical experimental design and linear regression analysis an improved B5 medium (B50-M) could be developed. When cultivating G. glabra hairy roots in B50-M medium we were able to obtain 9 g dried roots/l in 25 days which was twice as much as when using the initial B50 medium. According to tentative analyses the cultures did not contain glycyrrhyzin, but they produced liquiritigenin and isoliquiritigenin. The production of total phenolic substances (mg g(-1) dw) was higher in the improved medium resulting in significantly higher volumetric productivity (mg phenolic compounds l(-1)). This will further enable the extraction and identification of the phenolic compounds produced by the cultures.