High anisotropy, L1(sub 0), FePt nanoparticle assemblies consisting of 4 nm diameter particles are considered a potential data storage medium beyond 1 Tbit/in(sup 2). However, annealing at temperatures greater than 500 degrees C is required to form the high anisotropy phase. Recently work on the evolution of FePt nanoparticle assemblies as a function of annealing temperature has shown that for T(sub anneal) lesser than 650 degrees C a substantial drop in magnetization is observed. Here we show that the observed reduction in magnetization is due to silicide formation as a result of a chemical reaction with the native oxide or Si substrate. We also show that the fraction of particles with L19(sub 0) ordering increases as a function of annealing time with full L1(sub 0) ordering established only after annealing at 725 degrees C for 60 mins. We note that particle agglomeration also occurs under these conditions.