Saponification of extracellular lipids from the yeast NRRL YB-2501 yielded 8, 9, 13- trihydroxydocosanoic acid and a new keto dihydroxy acid of melting point 131-132° C. The keto acid was shown to be 8, 9-dihydroxy-13-oxodocosanoic acid by conversion to 5- ketotetradecanoic acid and suberic acid. By means of the method of Ames and Bowman (3), it was established that the vicinal hydroxyls of the new acid have the erythro configuration.