Alumina dispersion strengthened copper (ADSC) alloy was produced by internal oxidation. The hardness, ultimate tensile strength and elect rical conductivity measurements and microstructure observation on the produced 0.12 %ADSC (0.24% Al2O3, mass fraction) and 0.25%ADSC (0.50% Al2O3 ) subjected to different annealing treatments were conducted. The results show that the microst ructure of the produced ADSC is characterized by an uniform dist ribution of nano2Al2O3 particles in Cu-matrix; the particles range in size from 20 to 50nm with an in terparticle spacing of 30 100nm. The produced 0.12 %ADSC can maintain more than 87% hardness retention after 900℃, 1h annealing treatment; the recrystallization can be largely retarded and is not fully completed even after annealing at 1000℃ for 1h, followed by cold deformation of 84%; local grain growth can be observed after 1050℃, 1h annealing treatment. The results also show that increasing either the alumina content or cold deformation degree increases the hardness of the produced ADSC.