Fe-N thin films were deposited by using a Facing Targets type of Ion Source (FTIS). NH3 seemed to be more suitable than N2 ad reactive gas to prepare Fe-N films with larger 4piM(s) and higher permeability mu(r). The films deposited at P(NH3), of 0.04 mTorr exhibited mu(r) as high as about 3000 after post-annealing at 150-degrees-C.