In this project, highly sensitive magnetic switches are to be developed via the incorporation of nanoparticles of a ferromagnetic shape memory alloy (FM-FGL) into a soft polymer matrix with a level near the percolation threshold. Induced by magnetic fields, FM-FGL nanoparticles exhibit an extremely high elongation (up to 10 %). The shape alteration presumably leads to a change of the distance between the particles, thus resulting in a considerable change of the electrical resistance. The relaxation will be induced by a second magnetic field which is oriented perpendicularly with respect to the first one, which defines two metastable states.