X‐ray photoelectron spectroscopy, magnetization and magnetic susceptibility of MnPd1–x Sbx are reported. The substitution of Pd by Sb leads to drastic changes both in the crystallographic and electronic structure, with remarkably modifications in the magnetic properties of the investigated systems. The most important feature of the XPS spectra is the well‐defined magnetic exchange splitting of the Mn 3s core levels of all investigated alloys, giving a direct evidence of the existence of local magnetic moments in the Anderson's sense confined on Mn sites. (© 2007 WILEY‐VCH Verlag GmbH & Co. KGaA, Weinheim)