The decay phi --> eta'gamma has been observed by the CMD-2 detector at
the e(+)e(-) collider VEPP-2M at Novosibirsk. Of 5.5 million produced
phi's, six events of the phi --> eta'gamma decay were selected with t
he expected background less than one event. The corresponding branchin
g ratio is B(phi --> eta'gamma) = 1.2(-0.5)(+0.7).10(-4). It is the fi
rst observation of this radiative decay. (C) 1997 Published by Elsevie
r Science B.V.