We have investigated the transport and magnetic properties of the atom bridge made from magnetic materials, which is the atom-scale wire constructed between a scanning tunneling microscope (STM) tip and a solid surface, by the use of ab initio calculations. In the case of the twisted ladder structure atom bridge made of Fe, we have found that the magnetic state of the bridge changes from ferromagnetic to paramagnetic, as we compress the bridge in length. We report the spin dependent quantized conductance of the bridge. And we discuss the origin of a change in transport properties as we compress the bridge in length. (C) 2003 Elsevier Science B.V. All rights reserved.