This study investigated the quality characteristics and biological activities of rice germ fermented by Bacillus spp. During the milling process, the contents of rice germ in the rice bran (Control) were adjusted to 30% (RG30) and 70% (RG70). The approximate composition, pH, total acidity, total soluble solid, total sugar, polyphenol and flavonoid contents were measured. DPPH radical scavenging activity, xanthine oxidase (XO) and angiotensin converting enzyme (ACE) activities were also determined. We observed that the moisture content decreased after fermentation, while the crude protein was significantly increased. Fermentation remarkably lowered the pH from 5.83~6.26 to 4.77~4.93, thereby elevating the total acidity. Fermentation also increased the total solid contents, from 0.40~0.87 °Bx to 1.63~2.20 °Bx. The total sugar decreased to 136.81~151.53 mg/mL from 377.56~450.64 mg/mL. Polyphenol contents were the highest in control (0.59 and 0.73 mg/mL before and after fermentation, respectively). Fermentation significantly affected the increase of the polyphenols in both rice germ 30% and 70% samples, from 0.26 and 0.28 mg GAE/g before fermentation, to 0.52 and 0.70 mg GAE/g after fermentation, respectively. There was a slight increase in the flavonoid contents after fermentation. The IC50 value of the electron donating ability, as evaluated by the DPPH method, was the lowest in control (3.77 and 3.36 mg/mL before and after fermentation, respectively). Fermentation increased the XO inhibition activity up to 63.69% in control, 49.81% in rice germ 30%, and 59.32% in rice germ 70%. The ACE inhibition activities were also increased in the fermented control, rice germ 30% and 70%, to 40.51%, 22.69% and 33.91%, respectively.