We report measurements of electrical resistivity (ρ), Hall coefficient (RH), magnetization (M) and specific heat (Cp(T)) of high-quality icosahedral Al70.4Pd20.8Mn8.8 phases with different thermal treatment. An improvement in the quasi-crystallinity upon the annealing treatment caused a drastic increase in ρ up to 7000 μΩ cm accompanied by a very small electronic specific heat coefficient γ. The low temperature ρ(T) data has been analyzed in terms of weak localization and electron-electron interaction effects. The Hall resistivity (ρH) is found to be strongly temperature-dependent and varies linearly with the magnetization (M) for the same field and temperature. Magnetization measurement reveals that more conductive samples are more magnetic and vice versa. Magnetic susceptibility (χ) data of all the annealed samples agrees with the Curie-Weiss-like behavior implying the existence of localized moments. The negative Curie-Weiss temperature (θ) indicates strong antiferromagnetic coupling between individual Mn atoms. The magnetic Mn concentration is found to be small, ranging from 1.73×10-4 for the less magnetic sample studied up to 3×10-3 for the more magnetic one. The small electronic specific heat coefficient obtained for all the samples suggests a significant reduction in the electronic density of states (DOS) at the Fermi level (EF) upon thermal annealing treatment. © 2005 Elsevier B.V. All rights reserved.