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Six isolates with phenol degrading ability were obtained from marine sediments by enrichment procedures and an isolate, AM4, was identified as Alcaligenes sp. by 16S rDNA sequencing. The Plackett-Burman design was applied to estimate the significance of culture medium components and conditions for phenol degradation by Alcaligenes sp. AM4. The resulting medium formula which was predicted to be near optimal was: phenol conc. (240 μg/ml), culture volume (37.5 ml), inoculum's size (0.15 ml), NH4SO4 (0.5 g/l), K2HPO4 (0.75 g/l), KH2PO4 (0.75 g/l), MgSO4 (0.3 g/l) and NaCl (0.25 g/l). Scanning electron microscopy was applied to cells exposed to phenol, and a larger cell size was detected, resulting in a reduced cell surface. This relative reduction of the cell surface represents a cellular mechanism to reduce the toxic effect of this environmental stress factor.