reduction annealing. The powders may be used in oxide and carbide ceramics, which makes it possible to reduce the sintering temperature by 10 – 12% (100 – 150°C), to reduce open porosity by 7%, and to increase hardness. Very fine powders based on iron with a particle size of less than 1m, independent of preparation method, require protection from the action of the surroundings. The increased activity of these powders is connected with a significant increase in their specific surface, with the considerable number of point defects, dislocations of the crystal lattice, that stimulate chemical reaction with active elements [1]. It is well known [2] that the basis of reducing the activity of very fine powders is a reduction in their specific surface and free energy, an increase in particle size due selective recrystallization, and formation of protective layers. The low activity under normal conditions of very fine iron powders towards oxygen and other active substances, for which they have chemical affinity, is due to presence at their surface of a continuous oxide layer, that prevents development of inherent reactions for iron [1, 2]. In very fine powders, used for manufacturing permanent magnets, stabilization of their surface is accomplished due to forming protective layers. Recently the stability of the magnetic properties of specimens of the test powders has been provided by presence at the surface of particle specimens of protective layers of epoxy oligomers [3]. Resin ED-20 is used as an epoxy oligomer as the most widespread and having the optimum content of functional groups. The aim is this work is to study the magnetic properties of specimens made from electrolytic powders based on iron with a composite organic coating after reduction annealing. Powders based on iron were prepared by electrolysis in a two-layer bath. The upper layer consisted of oleic acid and