PACS 75.50. Kj, 75.75+a, 76.80.+y, 81.07.Wx Monodispersed amorphous Fe 2 O 3 nanoparticles with the size ranging from 1 to 4 nm have been prepared by thermally induced oxidative decomposition of Prussian Blue, Fe 4 [Fe(CN) 6 ] 3 , in air. Amorphous nanopowders exhibit specific magnetic behaviour strongly affected by interparticle interactions and extremely low particle size with a high contribution of the surface anisotropy as illustrated by temperature dependent and external field Mössbauer spectroscopy and magnetization measurements (4-300 K). Some of the properties are in close similarity to those of spin glasses including the fast thermal variation of superparamagnetic fraction in the Mössbauer spectra, or the particle size independence of the blocking temperature, and non-saturation of magnetization even at 5 K and magnetic field of 10 T. The reduced value of internal magnetic hyperfine field (∼49 T at 5 K) and no indications of the tetrahedral Fe 3+ sites in the 5T/5K external field Mössbauer spectra are the principal found differences in comparison with the magnetic behaviour of nanocrystalline γ-Fe 2 O 3 .