So far, attempts at realizing spin-polarized current injection into a semiconductor using metallic ferromagnetic contacts have yielded unsatisfying results. In this paper, we present a simple model of diffusive transport, which shows that the principle reason for these negative results is a conductivity mismatch between the ferromagnetic contacts and the semiconductor. Moreover, we demonstrate that this problem can be addressed by using dilute magnetic semiconductor (DMS) contacts instead of metallic contacts. We present experimental results of optical measurements on a GaAs/AlGaAs diode fitted with a DMS spin injector contact. These measurements show a spin polarization of around 90% in the semiconductor. Furthermore, we discuss a novel magnetoresistance effect based on the suppression of one of the spin channels in the semiconductor which should allow the detection of a spin-polarized current by magnetoresistance measurements. (C) 2002 Elsevier Science B.V. All rights reserved.