The primary objective of this investigation was to bring in lime light the importance of the exotoxin produced by B. cereus and B. licheniformis, which otherwise are overshadowed by the 2 other exotoxins of bacterila origin viz. staphylococcal and clostridial toxins. The investigation has been with 2 known and identified strains viz. B. cereus NCIM-2156 and B. licheniformis NCIM-5339 were found to be potent exotoxin producers. The organisms showed all the 3 activities like proteolytic, phospholipolytic and hemolytic. The organisms were grown on simple substrates like skimmed milk powder and egg yolk emulsion. The organisms also showed strong fibrinolytic activity on blood clots. Both the organisms are known saprophytes in an environment like soil. Therefore, foods which are not handled with proper hygienic and sanitation care have all the probability of getting contaminated with these types of organisms and will contain the potent exotoxins.