New nanostructured Al matrix composite Al-Al2O3 with homogeneous distribution of oxide particles was fabricated by magnetic pulsed compaction of partially oxidized Al nanopowders preheated up to 400-500degreesC in vacuum. The particles of starting powders with the mean sizes of 50-200 nm represent the grains of metal aluminum covered with the shells from hard oxide Al2O3 in amorphous state. Under action of intensive pulsed pressure (1 GPa, 300 microseconds) the mass destruction of oxide shells with the formation of a metal matrix containing the reinforcing oxide nano-sized particles is realized. At pulsed compaction the simultaneous actions of high pulsed pressure, large mechanical pulse of particles and accompanying adiabatic heating are successfully combined. The sintered composite is characterized by fine homogeneous structure, full density and high microhardness (about 2 GPa), which are stable up to 400degreesC. The tensile strength of a material exceeds 350 GPa at room temperature. (C) 2004 Kluwer Academic Publishers.