It is observed that the three-dimensional BTZ black hole is a supersym
metric solution of the low-energy field equations of heterotic string
theory compactified on an Einstein space. The solution involves a non-
zero dilaton and NS-NS H-field. The entropy of the extreme black hole
can then be computed using string theory and the asymptotic properties
of anti-de Sitter space, without recourse to a D-brane analysis. This
provides an explicit example of a black hole whose entropy can be com
puted using fundamental string theory, as advocated by Susskind. (C) 1
998 Elsevier Science B.V.