We report the observation of the fractional quantum Hall effect in the lowest Landau level of a two-dimensional electron system (2DES), residing in the diluted magnetic semiconductor Cd(1-x)Mn(x)Te. The presence of magnetic impurities results in a giant Zeeman splitting leading to an unusual ordering of composite fermion Landau levels. In experiment, this results in an unconventional opening and closing of fractional gaps around filling factor v = 3/2 as a function of an in-plane magnetic field, i.e. of the Zeeman energy. By including the s-d exchange energy into the composite Landau level spectrum the opening and closing of the gap at filling factor 5/3 can be modeled quantitatively. The widely tunable spin-splitting in a diluted magnetic 2DES provides a novel means to manipulate fractional states.
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