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This paper describes a new form of the radial flux type hysteresis motor having large output, high efficiency, and high power factor. The rotor ring of the machine is made of Fe-Cr-Co magnet steel and has magnetic anisotropy and slits. In order to analyze motor performance at synchronous speed and starting, the finite-element method is used. In this paper, magnetic hysteresis is considered by Using complex permeability. Predicted and measured values of motor performance characteristics agree well. Finally, the relation between dimensional ratio of slits and motor performance is described quantitatively.