  The optical absorption spectra in the region of the \fd transition energies
of epitaxial layers of of EuTe and \PbEuTe, grown by molecular beam epitaxy,
were studied using circularly polarized light, in the Faraday configuration.
Under \sigmam polarization a sharp symmetric absorption line (full width at
half-maximum 0.041 eV) emerges at the low energy side of the band-edge
absorption, for magnetic fields intensities greater than 6 T. The absorption
line shows a huge red shift (35 meV/T) with increasing magnetic fields. The
peak position of the absorption line as a function of magnetic field is
dominated by the {\em d-f} exchange interaction of the excited electron and the
\Euion spins in the lattice. The {\em d-f} exchange interaction energy was
estimated to be $J_{df}S=0.15\pm 0.01$ eV. In \PbEuTe the same absorption line
is detected, but it is broader, due to alloy disorder, indicating that the
excitation is localized within a finite radius. From a comparison of the
absorption spectra in EuTe and \PbEuTe the characteristic radius of the
excitation is estimated to be $\sim 10$\AA.
