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We present a study of magnetotransport in CrO2/polystyrene (PS) composites over a range of polystyrene concentration (0-30wt.%). In the experiment, an obvious enhancement in magnetoresistance (MR) is observed at 77K and at room temperature as the half-metallic CrO2 particles are encapsulated with a thin layer of insulating polystyrene. The enhanced MR can be interpreted in terms of spin-dependent intergranular tunnelling with 4-nm-thick PS barrier. Moreover, it is found that the novel PS barrier contributes to room-temperature MR more significantly than that at 77K. Temperature dependence of resistance is good agreement with ~ T-1/4 in the temperature range from 77 to 298 K.