A miniature electro-acoustic transducer is provided which includes a magnetic circuit. The magnetic circuit includes a permanent magnet assembly adapted to generate a magnetic flux in an air gap, the permanent magnet assembly itself included first and second permanent magnets arranged on opposite sides of the air gap. A magnetically permeable outer housing portion forms an integral part of the magnetic circuit and a voice coil is positioned in the air gap, the voice coil being operatively connected to a diaphragm.