Two-phase nanocrystalline ribbons were prepared by melt-spun and subsequent heat treatment. Excellent magnetic properties of the bonded magnet were achieved as follows: B-r = 0.67 T, H-j(c) = 664.3 kA center dot m(-1), (BH)(max) = 75.0 kJ center dot m(-3). The mean grain size of the ribbons heat-treated at 710 degrees C/4 min is about 50 nm. After heat-treated the ribbons at 750 degrees C/4 min, the mean grain size is about 100 nm.