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Some ferromagnetic materials with localized magnetic moments have become a hot topic in modern solid-state physics because of their potential applications, e.g. in spintronic devices. The magnetic systems of interest comprise diluted magnetic semiconductors and half-metallic ferromagnets. Like conventional concentrated local-moment systems, they are characterized by an exchange interaction between localized magnetic moments and quasi-free charge carriers. The current research on local-moment ferromagnetism is reviewed in a tutorial style by leading experts in this field. Experimentalists present the latest approaches to characterize the unique material properties, and theoreticians propose definitive ideas to explain the observed phenomena. Students and researches alike will benefit from this status report.