Inoculation of the CAM of the 10-day chick embryo with endotoxin preparations derived from the meningococcus and other Gram-negative microorganisms has been shown to result in multiple hemorrhages and death of the embryo within a few hours. Evidence has been presented to indicate that this lethal effect is specific for the general class of endotoxins derived from Gram-negative bacteria. Susceptibility to endotoxin was maximal in 10-day old embryos, and younger or older embryos showed little or no response. The optimal incubation temperature for the effect of endotoxin was 39.5 degrees C., and embryos incubated at 28 degrees C. were completely protected. The lethal effect was prevented by small amounts of cortisone, hydrocortisone, and 9-alpha fluorohydrocortisone, but not by cholesterol, desoxycorticosterone, or 1-dehydrocortisone.