Fe-MFI preparations active for the reduction of nitric oxide and nitrous oxide with hydrocarbons have been prepared by solid-state ion-exchange in the presence of air. While nitrous oxide can be removed by a variety of reducing agents, C-3 hydrocarbons, especially propane, are suitable for the catalytic reduction of nitric oxide. The reduction of nitrous oxide was always enhanced by increasing temperature, whereas maximum NO conversions were observed at temperatures around 300 degrees C. The addition of up to 7% of water was found to decrease the achievable conversions of the nitrogen oxides moderately. The activity for the removal of nitrous oxide was strongly inhibited in the presence of NO, probably via an intermediate formed from NO2 and the hydrocarbon. On the other hand, the observed NO conversions were not affected by the presence of nitrous oxide. In all cases, considerable amounts of carbon monoxide were formed from the hydrocarbons. It could be shown that the degree of ion-exchange achievable during the solid-state procedure is limited. At iron contents exceeding Fe/Al = 0.5, Fe ions are no longer being introduced into the zeolite. The excess iron is being precipitated as hematite, which is inactive in the reduction of both nitric oxide and nitrous oxide.