Abstract: We measured the electrical resistivity R(T) and specific heat C-p(T) between room temperature (RT) and 4.2 K as well as the microstructure by transmission electron microscopy (TEM) of a Ni-52 Ti-48 SMA quenched from 1000degreesC (B2-Phase range) to RT and then annealed for 1h at T=380degreesC, 550degreesC and 650degreesC. In the “as quenched” and the “650degreesC annealed” state no martensitic transformations (MT's) occur. The diffraction patterns show faint reflections originating from coherent Ni4Ti3 precipitates in an early state of formation. Additional reflections of the type 1/2 <110>, 1/2 <111> and 1/3 <110> result from various lattice displacement waves, which are precursors of the MT's to the B19' and R-phase, respectively. Indeed, high resolution TEM micrographs of the [001] zone of the “as quenched” sample reveal transverse 1/2 <110> <110> lattice displacement waves, precursors of the B19' martensite. The coherent Ni4Ti3 precipitates, homogeneously distributed on a small length scale, binder the MT's in the “as quenched” and the “650degreesC annealed” state, and thus only the precursors appear. When annealed at T=380degreesC, however, coherent Ni4Ti3 precipitates with a length of 10nm are clearly visible in TEM. These precipitates trigger the NIT from the B2 to the R-phase on cooling, as evidenced also by anomalies in R(T) and C-p(T). Annealing at T-550degreesC leads to the well known two step MT's from the B2 to the R-phase and then into the B19'-phase. These martensitic transitions are clearly seen as additional peaks in the specific heat and anomalies in the resistance, while the “as quenched” and 650degreesC annealed samples show weak features in R(T) and C-p(T).