Abstract: An energy level diagram is constructed on the basis of a microscopic Hamiltonian proposed for a description of interacting manganese impurities in diluted magnetic semiconductors (DMS). It is shown that ferromagnetism in p-type III-V DMS is governed by the strong hybridization of Mn2+-electrons with the mobile holes and localized states near the top of the valence band. The Curie temperature estimated from the proposed kinematic exchange agrees with the experiments on GaAs:Mn. The model is also applicable to the GaP:Mn system.