An aluminium matrix composite was prepared by mixing commercial aluminium powders and 15 vol % of FeAlCr powders and consolidation by hot extrusion. The extruded composite was subjected to severe plastic deformation by equal channel angular pressing (ECAP) at room temperature and at 150 degrees C. The extruded composite presents a uniform distribution of particles although some defects are observed such as residual pores and particle agglomerates. The particle distribution does not show a significant change due to ECAP. The extruded composite exhibits a relatively fine grain size of the order of 1-2 mu m that was refined to 550 nm after three ECAP passes at room temperature by route A and to 636 nm after four passes at 150 degrees C by route Bc. The yield stress of the composites was increased by 140 to 180% after ECAP as compared with the extruded condition.