  We investigate the influence of an interband exchange interaction on
magnetism in a two-band Hubbard model. Our main emphasis lies on spin-flip
scattering which is often neglected but is neccessary to retain the full
rotational symmetry of the Hamiltonian. We find a striking dependence of the
magnetization on the interband exchange coupling constant J and a substantial
suppression of ferromagnetic order for a large range of values of J. The onset
of an RKKY-like magnetic ordering mechanism is also observed.
