  We study the inclusive branching ratio for B-> X_s gamma in a class of
string-inspired SUSY models with non-universal soft-breaking A-terms. We show
that b->s gamma do not severely constrain the non-universality of these models
and the parameter regions which are important for generating sizeable
contribution to epsilon'/epsilon, of order 2 x10^(-3), are not excluded. We
also show that the CP asymmetry of this decay is predicted to be much larger
than the standard model prediction in a wide region of the parameter space. In
particular, it can be of order 10-15% which can be accessible at B factories.
