Though the demagnetization process of granular Co-Ag films became stee
p by adding permalloy layer, slow saturation in the magnetoresistance
(MR) curves was maintained. In addition, the MR characteristics of gra
nular Fe-Ag films prepared under a magnetic field, in which strong mag
netic anisotropy was induced, were isotropic. The disagreement between
the MR and magnetic characteristics implies that ferromagnetic granul
es are not responsible for the giant MR (GMR) effect. The MR ratio of
the granular Fe-AG films considerably increased at thickness less than
20 nm. In such ultrathin films, the features of the MR curves corresp
onded well with those of the magnetization curves with slow saturation
and no hysteresis. These results suggest that the GMR effect in the g
ranular systems is attributable to superparamagnetism.