We study the relation between distillability of multipartite states and vio
lation of Bell's inequality. We prove that there exist multipartite bound e
ntangled states (i.e,, nonseparable. nondistillable states) that violate a
multipartite Bell inequality. This implies that (i) violation of Bell's ine
quality is not a sufficient condition for distillability and (ii) some boun
d entangled states cannot be described by a local hidden variable model.