This paper reports on the development of a new horizontal-shaft hybrid-type magnetic bearing system. The bearing system will be used for a horizontal-shaft machine. The rotor is levitated due to the repulsive force between a stator and a rotor permanent magnet (PM). A lower cost and higher radial stiffness have been achieved by using a strontium-ferrite magnet on the rotor and an Nd-Fe-B PM above and below the rotor magnet. A finite-element analysis was performed to calculate the levitation force and radial stiffness. An upper stator magnet subtending an angle of 45° provides the best compromise between a large levitation force and radial stiffness. A model for the horizontal-shaft hybrid magnetic bearing system has been developed and includes the effect of the rotordynamics and the electromagnetic forces. An integral servocontroller was designed to stabilize the axial position. The controller has been implemented in a digital signal processor. Experimental results performed on a prototype system are in agreement with the theoretical results.