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Micro Instrumentation and Telemetry Systems

Micro Instrumentation and Telemetry Systems (MITS) was an American electronics company based in , founded in 1969 by Ed Roberts, Forrest M. Mims III, Stan Cagle, and Robert Zaller to produce radio and instrumentation kits primarily for and rocketry enthusiasts. The company expanded into in 1971 with the introduction of affordable electronic calculator kits, such as the MITS 816, which sold thousands of units and helped establish MITS as a key player in the emerging hobbyist market despite intense price competition from manufacturers like . By 1974, facing financial pressures from declining calculator prices, MITS pivoted to microcomputing under Roberts' leadership, designing the —a groundbreaking, low-cost computer kit based on the that required assembly by users and featured toggle switches for input and LED lights for output. The , announced on the January 1975 cover of magazine, became the first commercially successful , sparking the revolution and selling approximately 5,000 units in its first year alone, with total sales reaching up to 40,000 before the product's discontinuation. MITS's innovation extended to software when Roberts commissioned a BASIC interpreter for the Altair, leading and to develop in 1975, which not only saved the fledgling but also demonstrated the potential of software for personal computing. The company's success peaked with annual revenues of approximately $6 million by 1977, but it was acquired that year by Pertec Computer Corporation for $6.5 million, after which MITS operations were integrated, the Altair line was rebranded as the PCC 8800, and production ceased by 1978 amid shifting market dynamics. Roberts subsequently left the industry to pursue , leaving a legacy as a pioneer whose work democratized computing and influenced the personal computer era.

Founding and Early Operations

Establishment and Founders

Micro Instrumentation and Telemetry Systems (MITS) was founded in December 1969 in Albuquerque, New Mexico, by H. Edward Roberts, Forrest M. Mims III, Stan Cagle, and Bob Zaller. The company was incorporated in late 1969, with each founder receiving 950 shares and 200 shares allocated to their attorney. It emerged from the founders' shared interest in electronics and their professional experiences in military research, initially aiming to develop miniaturized telemetry systems for hobbyist applications. Roberts, who held an degree from and had served as a in the U.S. , worked at the Air Force Weapons Laboratory at , where he gained expertise in and systems. Mims, also employed at the Weapons Laboratory, brought skills in analog and digital devices, along with a passion for model rocketry that influenced the company's early direction. Cagle, a civilian electrical engineer and college acquaintance of Roberts, contributed technical design capabilities, while Zaller, another Weapons Laboratory colleague and officer, assisted with initial operations before departing in summer 1970. The venture began with modest capitalization, including contributions such as a $100 check from Mims dated January 16, 1970, drawn from the founders' personal savings and equipment to cover startup costs. Operations commenced from the founders' garages and apartments, reflecting the company's humble beginnings as a part-time endeavor among the founders. The name "Micro Instrumentation and Telemetry Systems" was proposed by Mims during an initial meeting, evoking the while highlighting the focus on compact devices for remote data transmission. This setup laid the groundwork for MITS's entry into telemetry products.

Initial Products: Model Rocket Telemetry Kits

Micro Instrumentation and Telemetry Systems (MITS) launched its first commercial products in late 1969 with miniaturized modules designed specifically for enthusiasts. The inaugural offering was the TX-1, recognized as the first commercially available transmitter, which enabled the transmission of flight data from rockets. Accompanying the TX-1 were accessory modules, including tone beacons for basic signaling, temperature sensors to monitor environmental conditions during flight, roll rate sensors to measure rotational dynamics, and tracking lights such as the TLF-1 for visual location of night-launched rockets. These components were engineered to be lightweight and compact, fitting within the constraints of hobbyist while adhering to low-power transmission limits to comply with FCC regulations. The telemetry kits were initially sold as preassembled units but transitioned to kit form by mid-1970 to appeal to builders and reduce costs, with the first advertisements appearing in the March 1970 issue of Model Rocketry magazine. Sales channels included direct mail order from MITS's Albuquerque facility and distribution through hobby shops catering to rocketry and hobbyists. Ground station receivers and data reduction systems were also developed as complementary products, allowing users to capture and analyze transmitted signals for post-flight review. This setup provided rocketeers with an accessible entry into electronic , leveraging the founders' expertise in from prior Air Force and engineering experience. Despite the innovative design, the products faced limited market adoption due to the niche audience of teenage hobbyists and academic researchers, resulting in only a few hundred units sold annually through 1970. Rapid emergence of competitors offering similar or cheaper alternatives further eroded sales, leading to the discontinuation of the telemetry line by mid-1971. The modest revenue highlighted the challenges of penetrating the specialized model rocketry market, prompting MITS to explore broader opportunities.

Calculator Division

Development and Product Line

Micro Instrumentation and Telemetry Systems (MITS) entered the electronic market in 1971 with the introduction of the Model 816, a four-function offered as a for hobbyists. This model utilized the Electronic Arrays S-80 six-chip large-scale integration (LSI) chipset, enabling basic addition, subtraction, multiplication, and with an 8-digit vacuum-fluorescent and internal 16-digit . Priced at $179 for the and $275 fully assembled, the 816 marked MITS's shift from niche products to mass-market , appealing to enthusiasts through its DIY assembly process requiring only basic skills; approximately 5,000 to 10,000 units were sold. Building on the success of the 816, MITS expanded its product line in 1972 with the series of handheld four-function calculators, including models like the 1206, 1209, and , which featured compact designs suitable for portable use while maintaining the and assembled options. By 1973, the company introduced the Model 1440 desktop calculator, incorporating scientific functions such as square roots, reciprocals, and trigonometric operations, supported by a revised Electronic Arrays 901-series chipset and a 14-digit for enhanced precision. In 1974, MITS released the Model 7440, an advanced scientific desktop calculator with expanded capabilities, including the option to pair it with a programmer module for custom operations, further emphasizing the modular, user-customizable approach in its designs. All models prioritized accessibility for hobbyists, with detailed manuals and in-house production that scaled to thousands of units monthly by late 1972. MITS handled manufacturing entirely in its facility, where operations grew rapidly to accommodate rising demand through expanded in-house assembly lines. As market competition grew, MITS adjusted pricing downward to remain viable, though this strained finances. The calculator line's innovations in LSI and kit-based laid groundwork for MITS's later ventures in personal computing.

Market Competition and Price Wars

The entry of Japanese manufacturers such as Sharp and Canon into the handheld calculator market in the early 1970s intensified competition, alongside U.S. rivals like Bowmar Instrument Corporation and Texas Instruments (TI). Bowmar's introduction of the Bowmar Brain in September 1971, priced at $325, marked a pivotal moment by making pocket calculators more accessible and sparking initial price pressures across the industry. In response to this competitive landscape, Micro Instrumentation and Telemetry Systems (MITS) adopted aggressive , slashing costs on its basic models from around $150 in 1973 to as low as $50 by 1974 to remain viable. The company supplemented these cuts with in hobbyist magazines, emphasizing kit-based to appeal to cost-conscious enthusiasts and undercut fully assembled competitors. TI's market entry in 1972 with the Datamath (TI-2500) at under $150 further escalated the 1972 , as the firm leveraged its chip manufacturing dominance to drive down costs industry-wide. By 1974, widespread price erosion had reduced average calculator prices to around $20–$50, rendering many models unprofitable and leading to MITS's accumulation of over $300,000 in debt. Despite selling more than 10,000 units and generating over $1 million in annual revenue by 1973, MITS faced imminent as margins collapsed under the onslaught of low-cost imports and scaled production from larger players. This crisis prompted a strategic pivot toward microcomputers, allowing the company to escape the calculator sector's volatility.

Media Exposure and Promotion

The pivotal coverage of Micro Instrumentation and Telemetry Systems (MITS) in Popular Electronics magazine centered on the January 1975 cover story introducing the Altair 8800 microcomputer kit, authored by technical editor Les Solomon. Facing severe financial strain from a brutal price war in the calculator market that had left MITS deeply in debt by 1974, company president Ed Roberts had been introduced to Solomon by MITS consultant and Popular Electronics contributor Forrest Mims earlier that year. Solomon, seeking a follow-up project to the magazine's 1974 Mark-8 computer kit feature, collaborated with Roberts to develop and showcase the Altair as "the world's first minicomputer kit to rival commercial models." The article provided detailed schematics, assembly instructions, and performance descriptions, positioning the $397 kit as an accessible entry into computing for electronics hobbyists. This exposure dramatically amplified MITS's visibility within the burgeoning hobbyist electronics community, as Popular Electronics boasted a circulation exceeding 400,000 readers in the mid-1970s. Orders flooded in immediately after the issue's release on newsstands in late December 1974, overwhelming MITS's Albuquerque headquarters with phone calls and mail; the company, which had projected only 800 total sales, received 1,000 orders in February 1975 alone and built a backlog of 4,000 within three months. By August 1975, cumulative sales had reached 5,000 units, propelling the Altair to become the first commercially successful personal computer and igniting widespread enthusiasm for home computing among amateur builders. MITS scrambled to scale production, hiring additional staff and expanding facilities to fulfill demand, a feat that rescued the company from insolvency and established it as a cornerstone of the microcomputer revolution.

Features in Radio-Electronics and Other Outlets

In June 1972, Radio-Electronics featured MITS's expanding lineup of desktop kits, including the 816A and 816B models priced at $149.95 and $159.95 respectively, highlighting their use of premium components from manufacturers like and , along with "computerizing" interfaces for enhanced functionality. These kits were positioned as affordable, high-caliber options for hobbyists, with the accompanying model offered at $199.95 in kit form, emphasizing MITS's role as the pioneering company in DIY calculator assembly. By 1975, Radio-Electronics continued coverage of MITS products through advertisements and product listings for the Altair 8800, highlighting expansion options such as memory boards and interfaces. Beyond Radio-Electronics, MITS's early telemetry kits for model rocketry received attention in amateur radio publications, with QST noting their utility for tracking and control in 1970, aligning with the magazine's focus on experimental electronics for ham operators. In 1975, Byte magazine provided early reviews of the Altair 8800, praising its assembly process and potential as a foundational platform for personal computing, with detailed guides on building and initial programming that underscored its accessibility to non-professionals. Local Albuquerque outlets, including the Albuquerque Journal, covered MITS's expansion during the mid-1970s, reporting on the company's shift from rocketry to calculators and computers, which boosted employment and positioned Albuquerque as a hub for electronics innovation amid annual sales reaching $6 million by 1977. This broader media exposure sustained MITS's calculator sales in the pre-Altair era by attracting DIY enthusiasts through technical features and ads, while post-Altair coverage nurtured user communities via shared modifications in reader letters and magazine correspondence sections. MITS reinforced its DIY ethos with full-page advertisements across outlets like and Radio-Electronics, promoting kit-based construction as an empowering, hands-on approach to technology ownership, as seen in promotions for the starting in early 1975.

Altair 8800 Microcomputer

Design and Core Products

The Altair 8800 microcomputer, introduced in 1975 by Micro Instrumentation and Telemetry Systems (MITS), featured a minimalist design centered on the Intel 8080 microprocessor operating at 2 MHz. This 8-bit CPU utilized a 16-bit address bus and an 8-bit data bus, forming the core of the system mounted on a motherboard with four expansion slots. The initial configuration included only 256 bytes of dynamic RAM, which could be expanded up to 64 KB through additional memory boards connected via the S-100 bus—a 100-line parallel interface that became a de facto standard for early microcomputers. Input and output were handled exclusively through a front panel equipped with 25 toggle switches for entering data and addresses in binary and 36 LEDs for displaying register contents and status, reflecting the machine's reliance on manual operation without integrated peripherals. The was offered primarily as a hobbyist , priced at $397 for assembly by the user or $498 fully assembled and tested. Assembly of the required soldering components onto the printed circuit boards, a process estimated to take 8 to 10 hours for experienced builders, and resulted in a basic system lacking built-in ports, devices, or a . The design emphasized expandability, with the enabling the addition of peripherals to address these limitations, though the base unit provided no facilities for or high-speed communication out of the box. In 1976, MITS released the Altair 8800b as an updated variant, incorporating a more robust metal enclosure for improved durability and ventilation compared to the original's wooden case, along with a larger supporting up to 18 expansion slots. Key expansions included 4K and 8K dynamic boards to boost memory capacity beyond the initial 256 bytes, a cassette interface board for low-cost program storage and loading using audio tapes, and a terminal adapter to connect video displays for more practical user interaction. Production of the ramped up at MITS's facility in , following the overwhelming response to its debut; by August 1975, over 5,000 units had been sold, with monthly production reaching approximately 1,000 by late that year, exceeding 10,000 total units by the end of 1976.

Marketing and Sales Strategies

MITS employed direct mail-order sales as its core marketing approach for the , leveraging advertisements in hobbyist publications like Popular Electronics to reach enthusiasts nationwide. This model allowed customers to purchase kits for $397 or assembled units for $498, capitalizing on the growing interest in affordable computing among radio amateurs and electronics hobbyists. To build excitement and provide hands-on demonstrations, company founder Ed Roberts organized nationwide bus tours showcasing operational systems, offering potential buyers their first interactive experience with personal computers. Complementing these efforts, MITS participated in key trade shows, including the inaugural World Altair Computer Convention held in Albuquerque in March 1976, which drew hundreds of attendees and solidified the product's visibility within the emerging community. The Altair's popularity led to rapid sales growth, with orders peaking at around 1,000 units per month by mid-1975 and total revenue rising from approximately $4 million in 1975 to $12 million in 1976. However, overwhelming demand created significant challenges, including production backlogs that delayed shipments by up to six months, frustrating early customers despite the company's small initial staff of fewer than 20 employees. To address support needs, MITS offered customer assistance through phone consultations and regular newsletters such as Computer Notes, which provided troubleshooting tips, updates, and user group information to foster loyalty amid the supply constraints. In response to the surge, the firm expanded operations dramatically, increasing its workforce to over 230 employees by and initiating international distribution agreements to extend reach beyond the .

Clones and Third-Party Expansions

The , released in late 1975 by IMSAI Manufacturing Corporation, emerged as the first prominent clone of the , utilizing the same microprocessor and for full compatibility with existing expansion cards while incorporating enhancements such as a more robust and an improved with better switch reliability and LED indicators. This design addressed common Altair complaints about build quality and expandability, quickly gaining popularity among hobbyists for its 22-slot that supported larger configurations. In 1976, Processor Technology introduced the Sol-20, an S-100 compatible system that integrated a video display module and directly into the , reducing the need for external terminals and making it more user-friendly for text-based applications compared to the basic setup. Vector Graphic followed in with boards and systems like the Vector 1, which adopted the and offered Z80 CPU options for enhanced performance while maintaining backward compatibility with peripherals. These clones proliferated due to the open nature of the standard, originally developed for the , which encouraged third-party adoption without proprietary restrictions. Third-party expansions flourished around these systems, with companies like and Processor Technology producing S-100 cards for storage, communication, and specialized functions; notable examples include Cromemco's floppy disk controllers and TU-ART serial/parallel interfaces, Northstar's hard-sectored floppy controllers, boards for remote access, and speech synthesizers such as the Computalker CT1 for phonetic output. By 1977, the had grown to encompass dozens of such peripherals from multiple vendors, enabling users to add , networking, and capabilities that transformed the platform into versatile computing setups. MITS, while initially frustrated by the copying—particularly with the IMSAI—prioritized compatibility over litigation, fostering market expansion rather than pursuing major lawsuits against cloners during 1975–1977. Hobbyist communities, including the formed in 1975, played a key role in driving these innovations through meetings where members exchanged schematics, prototypes, and troubleshooting tips for Altair-compatible hardware, accelerating the development of custom expansions and clones. This collaborative environment not only democratized access to personal computing but also spurred rapid iteration on S-100 designs, contributing to the platform's widespread adoption among early enthusiasts.

Software Developments, Including Altair BASIC

The launched with limited software support, primarily consisting of a basic monitor program that users entered manually via the front panel switches, along with simple paper loaders to facilitate program input from readers. These early tools, developed by MITS engineers, allowed rudimentary interaction but required significant user effort, such as toggling addresses and data bits to load code, highlighting the machine's initial focus on hardware experimentation over accessible programming. By mid-1975, MITS introduced 4K and 8K interpreters developed by , limited versions optimized for the Altair's memory constraints, distributed on paper and requiring at least 4 or 8 of respectively; these enabled basic arithmetic and simple control structures but lacked advanced features like handling. A pivotal advancement came with , developed by and in early 1975 while they were students at . Inspired by the Altair's announcement in , the pair adapted a for the processor using a simulator on a mainframe, completing a functional demo without access to actual Altair hardware. In July 1975, they demonstrated it to MITS founder Ed Roberts in Albuquerque, securing a licensing agreement that provided an initial payment of $3,000 plus royalties of $30 per 4K BASIC copy and $35 per 8K BASIC copy sold. This deal marked the founding of (initially Micro-Soft) and transformed into the system's flagship software, available in 4K and 8K tape versions that supported , subroutines, and user-defined functions, thereby enabling high-level programming for hobbyists without expertise. Subsequent software developments expanded the Altair ecosystem. In 1977, Microsoft released FORTRAN-80, a for the 8080 that supported elements from the emerging FORTRAN 77 standard, allowing scientific computations on Altair systems with sufficient memory and peripherals. Adaptations of Gary Kildall's operating system emerged around 1976, coinciding with the introduction of MITS floppy disk controllers, providing file management and multitasking capabilities that facilitated more complex applications on expansions. Users also contributed extensively, creating utilities like debuggers and assemblers, as well as games such as text-based adventures and simulations (e.g., a variant), shared through hobbyist newsletters and clubs. Software distribution evolved from paper tapes to more practical media. By late 1975, and related programs were bundled on cassette tapes with kits equipped with the 88-ACR interface, offering slower but cheaper storage than paper tape for loading at 300-1200 baud rates. MITS formalized offerings in its software catalog, listing variants, monitors, and utilities for $45 per package on tape, alongside emerging disk-based options, which broadened accessibility as the hobbyist community grew.

Acquisition by Pertec and Decline

The 1977 Sale

In 1977, Micro Instrumentation and Telemetry Systems (MITS) faced mounting financial pressures from intense competition in the market and the strains of rapid expansion, despite reporting profits in 1976. Although sales had generated significant revenue—reaching approximately $6 million annually by that year—the company's cash flow was strained, limiting funds for new product development and exacerbating operational challenges. To address these issues, MITS was acquired by , a prominent manufacturer of computer peripherals such as tape drives, for $6.5 million in stock. The transaction was finalized in May 1977, with founder receiving approximately $2–3 million in Pertec shares, providing him a substantial stake in the acquiring company. The acquisition was strategically motivated on both sides: Pertec aimed to leverage MITS's position in the burgeoning sector to expand beyond peripherals into complete systems, capitalizing on the Altair's market success. For MITS, the deal offered critical financial stability and enhanced resources for research and development amid growing rivals. Following the sale, MITS's operations were partially relocated from , to Pertec's facilities in to integrate with the larger entity. Ed Roberts was appointed vice president, overseeing the transition, though he later expressed dissatisfaction with the shift away from innovative engineering toward corporate priorities.

Post-Acquisition Products and Operations

Following the 1977 acquisition, Pertec integrated MITS into its PCC MicroSystems Division, where the line was maintained and expanded alongside Pertec's core peripherals business, including disc drives and tape systems designed for mainframe compatibility. This merger aimed to leverage MITS's expertise to bolster Pertec's entry into personal computing, but the focus quickly shifted toward storage solutions like the Pertec FD400 floppy disc system, which had been used in Altair configurations since 1976. New products under Pertec included the , released in August 1977, which updated the earlier with the CPU, 1 KB RAM, and support for expanded memory boards, sold as both kits and assembled units for $299 to $420. The model was also introduced in June 1977, offering a pre-assembled version with reduced front-panel functionality for dedicated software applications, often paired with iCOM peripherals acquired concurrently by Pertec. In 1978, Pertec rebranded the as the PCC 8800, preserving the original 8080-based design while integrating it into the PCC lineup without major hardware changes. Operations emphasized compatibility with Pertec's disc drives, such as the dual 8-inch Pertec 3202 system, to position the as a robust platform for in and hobbyist settings. However, sales declined sharply as the market transitioned to more user-friendly systems like the , introduced in 1977, which featured built-in keyboards, color graphics, and easier expandability, overshadowing the kit-based Altair's appeal. Challenges arose from frequent management changes within the PCC MicroSystems Division, which reportedly altered names and leadership every six months, leading to inconsistent strategy and internal clashes between Pertec's peripheral-focused executives and MITS's microcomputer engineers. Pertec's broader financial losses in the early 1980s, exacerbated by the personal computer market's rapid evolution, prompted the closure of the MITS division by 1982, with assets sold off and manufacturing in Albuquerque ending as the plant shut down.

Legacy and Impact

Influence on Personal Computing

The introduction of the by Micro Instrumentation and Telemetry Systems (MITS) in 1975 marked a pivotal moment in making microprocessors accessible to individual consumers, transforming from a domain of large institutions to one of hobbyists and enthusiasts. Priced at $397 in kit form, the Altair utilized the microprocessor, offering an affordable entry point into personal that previously required multimillion-dollar mainframes. This democratization spurred widespread experimentation, as users assembled and expanded the system, fostering a culture of innovation among non-professionals. The Altair's architecture further amplified its influence, establishing an for expansion cards that became the IEEE 696 standard and shaped subsequent designs. This bus enabled third-party peripherals and compatibility across systems, directly inspiring the (ISA) bus in the PC released in 1981, which facilitated the modular growth of the PC ecosystem. By promoting interoperability, the S-100 bus laid the groundwork for scalable hardware development in consumer computing. The ignited the personal computer industry by inspiring key founders and communities, including the formation of and . Bill and Paul founded in 1975 specifically to develop software for the machine, marking the birth of the commercial software industry tailored to personal use. Similarly, the prompted Steve to design the after attending meetings of the , a group established in 1975 to share -related projects, which evolved into a hub for the regional tech boom and the rise of entrepreneurial ventures. Economically, the Altair's success—selling over 10,000 units in its first year—catalyzed a burgeoning market, enabling the software sector's expansion through compatible programming tools and peripherals. This momentum contributed to the industry's growth to an estimated $1.8 billion in sales by , with revenues traceable to the Altair's role in spawning clones, add-ons, and software ecosystems. The Altair's legacy is preserved in the , where multiple examples, including the original 8800 model and related artifacts, are exhibited as foundational to computing history. Ed Roberts, MITS founder, received posthumous recognition for his contributions, including induction into the Alumni Hall of Fame in 2014 for inventing the first .

Later Careers of Key Figures

After the acquisition of MITS by Pertec in 1977, H. Edward Roberts left the company in 1979 to enroll in at the College of Medicine, from which he graduated in 1986. He then established a general medical practice in the rural town of , where he worked as a family physician, including making house calls to patients in remote areas, until his retirement in the early 2000s. Roberts maintained an interest in throughout his medical career, occasionally keeping abreast of technological advances while focusing primarily on healthcare. He passed away on April 1, 2010, at age 68 due to complications from while hospitalized in . Forrest M. Mims III, a co-founder of MITS and early contributor to its electronics kits, departed the company in the mid- to embark on a distinguished career as an amateur scientist, author, and inventor. He authored over 60 books on , science, and environmental topics from the through the , with sales exceeding 7.5 million copies worldwide, including influential titles like Getting Started in Electronics (), which became a staple for hobbyists through its distribution via . Mims also developed educational electronics kits and hand-drawn "Engineer's Mini-Notebook" series, which democratized and inspired countless careers in and . In recognition of his contributions, he received the Rolex Awards for Enterprise in 1993 for advancing and atmospheric monitoring techniques. From the late onward, Mims shifted focus to , pioneering low-cost instruments for monitoring atmospheric phenomena. He established and operated a USDA-designated UV-B monitoring site at in , beginning in 2004, and conducted daily solar noon measurements of , radiation, , and aerosols. By February 4, 2025, these observations marked 35 continuous years of data collection, contributing to global and environmental research programs like . Mims detailed his methodologies and findings in books such as Hawai'i's : Fifty Years of Monitoring the Atmosphere (2023), underscoring his enduring impact on . Among other key figures associated with MITS, and Paul Allen's work on in early 1975 directly catalyzed the founding of . Having developed the interpreter to run on the , they demonstrated it successfully to Roberts in March 1975 and formalized their partnership as "Micro-Soft" by April 4, 1975, initially operating out of Albuquerque to support MITS before relocating and expanding into a global software powerhouse. Their initial contract to license to MITS for $10,000 marked the company's first revenue, laying the groundwork for Microsoft's dominance in operating systems and applications from the late 1970s onward. Stan Cagle, an electrical engineer and MITS co-founder who collaborated on early product designs, left the company in the early 1970s to pursue other professional interests. Robert Zaller, another MITS co-founder and officer, was bought out by Roberts shortly after the company's founding and left early, with limited information available on his subsequent career.

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