We present results of observations of the known galactic X-ray source 4UL70
0-37 with the telescope ART-P on board GRANAT. The source, being a neutron
star accreting from an optical companion stellar wind, exhibited an extreme
ly hard (for a neutron star system) spectrum and strong X-ray variability o
n a time scale of similar to 10(3) s. We explain the variability in terms o
f the stellar wind accretion theory including effects of X-ray heating.