We report experiments on the magnetism and the transport in III-V based diluted magnetic semiconductors (Ga,Mn)As and (In,Mn)As. Heat treatment (annealing) at comparatively low temperatures (slightly above the growth temperature) is unexpectedly found to be effective to improve the ferromagnetism and the metallic conduction. Infrared optical conductivity measurements and soft x-ray absorption spectroscopy reveal that the double exchange model is convenient to describe the ferromagnetism. The transport in the vicinity of metal-insulator critical point was studied in detail by using the low-temperature annealing method. §1 Introduction Diluted magnetic semiconductors (DMS's) synthesized by introduction of magnetic ions into semiconductors are now expanding a new horizon of "spin-electronics". Especially III-V based DMS's (In,Mn)As and (Ga,Mn)As have attracted much attention. They undergo ferromagnetic transition at comparatively high temperatures and have high connectivity to sophisticated III-V artificial superstructures. A remarkable feature of the ferromagnetism is that it is mediated by the doped holes, which fact was demonstrated by illumination-driven ferromagnetic transition 3) and by disappearance of the ferromagnetism by counter doping 4) .However the physical mechanism of the ferromagnetism is still under discussion. In a II-IV DMS, it is claimed that the Ruderman-Kittel-Kasuya-Yosida (RKKY) interaction is the origin of the transient ferromagnetism 5) . The transport and the response to external magnetic field in (Ga,Mn)As were analyzed along similar interpretation 6) . This interpretation, however, has an essential difficulty that the estimated amplitude of the exchange constant tends to exceed the Fermi energy. While interpretations to solve this inconsistency were attempted 7) , a calculation of band structure 8) in (In,Mn)As suggested doubleexchange (DE) mechanism is more plausible. Though the result of the band-calculation is also getting experimental supports 9) , decisive evidence has not appeared yet. In a sense, these two pictures describe limiting cases and the reality should exist between them. It would be meaningful, however, to examine which picture is convenient to describe the experiments.These materials also shows exotic properties in transport 10) . Increasing Mn concentration (x) from the dilute limit, they undergo an insulator-to-metal transition (the first MIT). The ferromagnetism appears at a Mn concentration slightly lower than the first MI critical point. Further increase in x causes a metal-to-insulator re-entrant transition (the second MIT).One of the problems in these materials for researches and applications is that the qualities of the grown crystals are too sensitive to the growth conditions because the conditions are very far from equilibrium 11) . In this article, we report that annealing (heat treatment) at comparatively low temperatures partly solve the problem. We apply this method to explore the picture for the ferromagnetism, and the nature of the second MIT. O...