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Al-N-M (Co, Fe) thin films were reactively deposited with two different combinations of targets, namely Al-Co50Fe50 and Al-Co20Fe80 targets, in a two-facing-target type dc sputtering (TFTS) system. Their structural changes were investigated together with the magnetic and electrical property changes accompanying annealing. The magnetization increases with annealing time and temperature for both types of film. All the films show semiconducting conduction except the annealed films prepared with the Al-Co50Fe50 target combination, which show ohmic conduction.