Isolation of 75 red colonies from fresh water or sea area of Taiwan were analyzed and found to restore an astaxanthin production of strain named as Paracoccus sp. No. AS-14 by according to traditional biochemical and 16S rRNA identifications. The optimal culture conditions of this strain could produce the highest astaxanthin content (0.02~0.05 mg/L) when incubated in Marine broth (MB) containing 3% salt concentration at 25 oC, 100 rpm for 3 days. In MB containing 0.25% sucrose was the suitable carbon source, however, the astaxanthin yield were considerably reduced when additional nitrogen sources were added. 0 ~ 1.0% concentration of defoaming agent did not influence the growth and astaxanthin content of AS-14. When 3 L fermentation was carried out in a fermentor at 100 rpm, a maximum amount of cell mass (9.8 g) was harvested at the 0.7 VVM aeration rate. When aeration rate up to 1.0 VVM, the yield showed the highest astaxanthin content (589.1 μg/g). When AS-14 incubated in TSB containing 0.25% MgCl2 could produce 0.50 mg/L astaxanthin. A mutant AS-14ML32 after mutagenesis with NTG could increase astaxanthin production to 6-fold higher than AS-14.