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Windows 98

Windows 98 is a hybrid kernel graphical operating system released by Microsoft Corporation to retail customers on June 25, 1998, as the successor to Windows 95. It emphasized improvements in system performance, reliability, hardware compatibility, and internet integration, including native support for USB devices and the introduction of the Windows Driver Model for streamlined driver development. The operating system's deep bundling of Internet Explorer 4.0 with core file management functions in Windows Explorer represented a defining evolution in web-oriented computing but precipitated antitrust litigation from the U.S. Department of Justice, which alleged unlawful tying of browser software to the OS platform. Key user interface advancements included the Quick Launch toolbar for rapid application access and thumbnail previews for image files, enhancing everyday productivity on consumer PCs. Windows 98 Second Edition, released to manufacturing on May 5, 1999, built upon the original with refinements such as Internet Explorer 5.0, improved networking capabilities, and better support for emerging peripherals like DVD drives.

Development

Origins and planning

Development of Windows 98, internally codenamed , began shortly after the August 24, 1995 release of , which had sold over 1 million copies within four days and established as the dominant force in consumer operating systems. The project originated from Microsoft's recognition of Windows 95's market triumph, with planning initiated to evolve the 9x lineage rather than pivot consumers to the enterprise-oriented platform, as NT lacked the broad hardware support and compatibility essential for the burgeoning home PC market. This decision reflected empirical trends in the PC industry, where consumer sales drove explosive growth—U.S. PC shipments rose from 5.8 million units in 1990 to 41.4 million in 1997—necessitating an OS optimized for , , and plug-and-play peripherals over NT's stability-focused architecture. Core planning objectives centered on refining 's foundation to enhance hardware compatibility, particularly with nascent standards like USB, which received only optional OEM support in Windows 95 OSR2.1 and later updates. Engineers prioritized seamless integration of technologies, driven by the mid-1990s surge in adoption, while targeting fixes for Windows 95's shortcomings in dynamic device management and multitasking stability under heavy loads from legacy applications. remained paramount, as sought to protect the vast ecosystem of existing software—estimated at millions of and 16-bit Windows titles—without alienating the consumer base that powered 95% of PC OS shipments by 1999. Internal milestones included the first developer preview build (1351) in December 1996, marking the shift from conceptual planning to active feature prototyping under the banner. Microsoft's strategy eschewed radical redesigns, opting instead for incremental enhancements informed by user feedback and hardware vendor input, such as improved to accommodate rising peripheral complexity amid falling PC prices that broadened home adoption. This consumer-centric approach contrasted with parallel development for businesses, underscoring a bifurcated where 9x variants captured volume-driven sales, evidenced by Windows 95's outsized contribution to Microsoft's 28% fiscal 1998 growth.

Key innovations and challenges

One major challenge in Windows 98's development was reconciling the operating system's entrenched 16-bit and Windows 3.x legacy components with expanding 32-bit capabilities, as the hybrid architecture retained 16-bit subsystems for compatibility with older applications and drivers, which complicated and contributed to system instability under prolonged operation. This tension arose from the need to support millions of existing installations and software ecosystem without full rewrites, forcing developers to address issues like the 49.7-day uptime limit caused by 32-bit integer overflows in tick counts inherited from earlier designs. To mitigate these, conducted extensive beta testing starting with Beta 1 in June 1997, escalating to Beta 3 in December 1997, involving over 150,000 participants in the Consumer Beta Preview Program who provided feedback on crashes and usability. A pivotal innovation was the introduction of the Windows Driver Model (WDM), which standardized driver interfaces to accommodate evolving hardware standards like USB and power management, reducing fragmentation from the prior model used in and enabling better plug-and-play functionality for peripherals. This shift was necessitated by hardware market trends, including the proliferation of USB devices, as evidenced by increased developer activity following WDM's framework for modular, kernel-mode drivers shared across Windows versions. Complementing this, enhancements to —shipping as version 5.2—optimized multimedia rendering and gaming performance through improved APIs for 3D graphics and audio, responding to consumer demand for richer entertainment experiences amid rising PC gaming adoption rates in the late 1990s. Development faced resource strains and delays, notably from integrating 4.0, which required iterative refinements to embed web technologies into the without compromising core OS stability, pushing the release from an initial 1997 target to June 25, 1998. prioritized empirical testing data from users on over expedited timelines, despite external pressures, to ensure seamless browser-OS cohesion that aligned with observed user behaviors favoring unified .

Architecture and technical foundation

Hybrid kernel and DOS legacy

Windows 98 utilizes a architecture that combines 16-bit and 32-bit code execution, fundamentally layered atop version 7.1 as both a boot loader and foundational compatibility substrate. This structure enables the operating system to initiate in for low-level hardware initialization and application support before transitioning to for the 32-bit Windows environment, preserving access to the extensive corpus of legacy software from the and Windows 3.x eras. The design reflects a causal prioritization of installed-base over architectural purity, as the dominant consumer computing in 1998—estimated at over 90% -derived applications—necessitated seamless execution without requiring widespread recompilation or overhead. Device driver management in this hybrid framework initially relied on Virtual Device Drivers (VxDs), which operate in a mix of ring 0 and ring 3 modes to handle interrupts and I/O while interfacing with the core. Windows 98 introduced partial support for the Windows Driver Model (WDM), a nascent standard intended to unify driver development across consumer and enterprise Windows variants by enforcing modular, layered architectures with improved enumeration via standardized minidrivers and class drivers. This transition aimed to mitigate VxD's proprietary limitations, such as non-portability to kernels and vulnerability to single-point failures in monolithic code, though full WDM adoption lagged due to vendor inertia and the need for with VxD-equipped peripherals. The DOS legacy, while enabling broad software continuity, engendered inherent stability risks through unprotected real-mode operations that could corrupt the 32-bit during mode switches or driver faults, bypassing hardware mechanisms like paging and segmentation enforcement. Crash diagnostics from the era, including logfiles and kernel dumps, frequently traced general protection faults (GPF) and blue screen errors to VxD misbehavior or real-mode DOS sessions interrupting protected-mode execution, with timing-sensitive race conditions exacerbating failures on processors exceeding Pentium speeds due to unadjusted polling loops in DOS subsystems. In contrast to the fully protected NT kernel's ring-based isolation—which empirically demonstrated lower crash rates in enterprise deployments—the hybrid model's causal exposure to legacy code contributed to Windows 98's averaging under 100 hours in consumer workloads, underscoring the trade-off between compatibility breadth and systemic robustness.

File system and memory management

Windows 98 provided native support for the , an evolution from the FAT16 used in earlier versions, enabling partition sizes up to 2 terabytes and cluster sizes as small as 4 kilobytes for more efficient storage utilization on drives exceeding the 2-gigabyte limit of FAT16. This capability accommodated the rapid growth in hard disk capacities during the late 1990s, where average drive sizes surpassed FAT16 constraints, reducing wasted through smaller allocation units and supporting up to 268 million files per volume. The operating system's memory management built on Windows 95's framework but incorporated refinements to virtual memory handling, including improved paging and mapped file I/O processes that expanded the effective addressable space to 4 gigabytes for 32-bit applications while dynamically adjusting the swap file to minimize thrashing under load. These changes allowed better multitasking performance on systems with 64 megabytes or more of , as the Virtual Memory Manager more effectively balanced physical memory and disk-based paging compared to prior iterations. However, the hybrid 16/32-bit architecture inherited from limited enforcement, with 32-bit processes sharing a single flat lacking robust isolation, permitting one application to overwrite another's and perpetuating vulnerabilities absent in fully protected kernels. Architectural disassembly reveals that the first of remained unprotected, and relied on application compliance rather than hardware-enforced boundaries, contributing to systemic instability risks.

Features and enhancements

User interface improvements

Windows 98 enhanced the desktop shell through the integration of the Windows Desktop Update, which introduced the feature enabling users to overlay HTML-based web content, channels, and components directly onto the desktop background for a more dynamic and customizable interface. This allowed for subscription to web channels via integration, providing real-time updates without opening separate browser windows, thereby streamlining access to frequently viewed information. The taskbar received the Quick Launch toolbar by default, featuring one-click icons for launching , , and the Show function to minimize all windows instantly. Users could customize this toolbar by adding shortcuts to other applications, reducing navigation steps compared to prior versions reliant on the or desktop icons alone. Additionally, the was reorganized with submenus for Programs, Documents (listing up to 15 recently accessed files), and Settings, alongside options for an advanced customizable mode that permitted dragging items and creating cascading folders to minimize menu clutter. Accessibility options were expanded with tools like the Magnifier utility, which enlarged portions of the screen in a floating window, alongside features such as StickyKeys for sequential use, high-contrast display schemes, and an Wizard for setup. These addressed visual and motor impairments by offering magnification levels adjustable via the control panel and compatibility with third-party assistive hardware. The folder appeared prominently on the desktop as a centralized repository for user files, simplifying file management over scattered directories in Windows 95.

Hardware and peripheral support

Windows 98 provided enhanced (PnP) capabilities compared to , enabling more reliable automatic detection and configuration of devices through improved and mechanisms. This advancement addressed limitations in earlier systems where manual IRQ and assignments often led to incompatibilities amid the growing variety of PC peripherals in the late 1990s. Native USB support was integrated out-of-the-box in Windows 98, supporting USB 1.1 speeds up to 12 Mbps for devices like keyboards, mice, and printers without requiring separate supplements as in OSR2. This facilitated faster device enumeration and reduced setup times, aligning with the proliferation of USB-equipped peripherals as manufacturers standardized on the interface to simplify cabling from and ports. By the late 1990s, USB ports became common on consumer PCs, driving adoption for low-to-medium bandwidth applications. The introduction of the Windows Driver Model (WDM) in Windows 98 enabled unified driver architectures for audio and video peripherals, supporting standards such as for integrated sound codecs. WDM drivers allowed kernel-mode streaming for lower and better in multimedia applications, with compatibility verified through standardized testing for devices from chipsets like and VIA. This model reduced vendor-specific implementations, improving as sound cards and capture devices became ubiquitous in PCs for gaming and video editing. IEEE 1394 (FireWire) support was included natively, offering transfer rates up to 400 Mbps for high-bandwidth peripherals like digital video camcorders and external storage. This catered to the rising market for consumer in the late 1990s, where FireWire's isochronous data handling ensured real-time performance superior to USB 1.1 for such tasks. Drivers facilitated connections and daisy-chaining, though full functionality often required Windows 98 Second Edition for broader device certification.

Networking and internet integration

Windows 98 shipped with Internet Explorer 4.0 as the default web browser, incorporating the Windows Desktop Update to enable functionality, which rendered web pages and content directly on the desktop and integrated browser elements into Windows Explorer for a unified web-desktop experience. This integration allowed users to subscribe to web channels for dynamic content updates and subscribe to -formatted shortcuts, streamlining access to online resources without launching a separate browser window. The bundling and deep OS-level ties contributed to Internet Explorer's market share surpassing competitors, reaching dominance by the early through widespread adoption on new Windows installations. Dial-Up Networking in Windows 98 built on prior versions with support for multilink (PPP), enabling aggregation of up to four modem connections to boost effective and reliability for dial-up users, alongside improved scripting for automated connections. An optional Dial-Up Networking 1.4 upgrade added 128-bit encryption for secure transmissions over PPTP and enhanced performance for remote access. Windows 98 Second Edition introduced Internet Connection Sharing (ICS), a feature that configured a host PC's connection—often dial-up via —to act as a gateway for other networked computers using DHCP and protocols over Ethernet or , without requiring additional hardware like routers. ICS simplified multi-device in households, aligning with the period's rising availability of affordable network interface cards and coinciding with Windows 98's strong sales of over 25 million units in 1998, which amplified consumer exposure to basic home setups. The system defaulted to for , a lightweight client supporting POP3 for downloading messages to local storage and IMAP for server-side folder synchronization, paired with the Windows for centralized contact management across applications. This setup optimized dial-up efficiency by allowing offline composition and queued sending via SMTP, reducing connection times for typical early users.

Release and marketing

Initial launch

Windows 98 was released to manufacturing on May 15, 1998, and became available at outlets worldwide on June 25, 1998. The full version carried a suggested price of $209 for new users without a prior qualifying Windows license, while upgrade pricing from or earlier versions stood at $109. Microsoft's rollout strategy emphasized OEM preinstallation, with the operating system bundled on the vast majority of new personal computers shipped that year, aligning with the company's established dominance in PC operating system licensing. Initial sales metrics indicated strong uptake, as customer purchases of Windows 98 upgrade licenses surpassed 1 million units within weeks of availability. Marketing efforts focused on hardware integration synergies, including partnerships with to optimize boot times and application performance, positioning the OS as a seamless upgrade for emerging and connectivity needs. Launch demonstrations highlighted practical advancements like USB plug-and-play support, demonstrating simplified peripheral connectivity without extensive configuration—features timed to coincide with maturing hardware cycles for devices such as and external storage. These events underscored Windows 98's role in bridging legacy compatibility with modern interface enhancements, fostering immediate commercial viability amid rising PC demand.

Windows 98 Second Edition

Windows 98 Second Edition (SE), released to manufacturing on May 5, 1999, served as a minor update to the original , incorporating fixes for reported bugs and targeted enhancements based on user feedback and hardware advancements. The update addressed stability problems from the initial release, such as registry corruption and driver incompatibilities, through integrated patches and refined system components. It also introduced support for emerging peripherals, including better handling of USB composite devices like hubs, scanners, and audio interfaces via improved (WDM) implementation. Key software additions included 5.0, which offered enhanced rendering, offline browsing capabilities, and better standards compliance compared to the version 4.0 bundled in the original Windows 98. Microsoft 3.0 was upgraded with improved video conferencing, collaborative data sharing, and integration for home networking scenarios. Additional features encompassed Internet Connection Sharing for proxying internet access across local networks and native DVD-ROM drive support, reflecting responses to growing multimedia and connectivity demands. Microsoft provided the SE upgrade as a low-cost option—often just the price of shipping—for owners of the original Windows 98, distributed via to encourage retention amid competition from alternatives like Apple and 9. This strategy incorporated over a dozen hotfixes and driver updates, mitigating early adoption hurdles such as modem reliability and glitches reported in user diagnostics and support logs. The edition maintained backward compatibility with DOS applications while prioritizing plug-and-play hardware recognition, evidenced by expanded WDM audio and modem drivers.

Reception and market impact

Commercial performance and adoption

Windows 98 achieved strong initial commercial success, with retailers selling 530,000 boxed copies in the United States during its first four days of availability from June 25 to June 28, 1998. This figure exceeded expectations for retail channels alone, as many units were pre-installed on new PCs via (OEM) agreements, reflecting Microsoft's bundling strategy that prioritized compatibility with existing hardware bases and affordable upgrades priced at around $90 for prior users. By the 1998 holiday season, license sales reached nearly 3 million units, positioning Windows 98 as the best-selling software title of the year and surpassing previous Windows versions in seasonal demand. The operating system's adoption drove widespread consumer PC penetration, capturing approximately 95% of global operating system shipments by 1999 through enhanced backward compatibility and support for emerging multimedia hardware, which lowered barriers for home users transitioning from DOS or earlier Windows iterations. This dominance in the consumer segment, estimated at over 80% market share for Windows overall, facilitated an expansion in the PC ecosystem, with global shipments growing amid 13% industry growth in 1998 despite a slowdown from prior years. Affordability via OEM pre-installation—often at no additional cost on sub-$1,000 systems—combined with plug-and-play features for peripherals, accelerated household adoption, contributing to annual PC unit sales exceeding 100 million by the late 1990s as multimedia applications proliferated. Windows 98's commercial momentum underpinned a boom in compatible software development, particularly for games and digital media, as developers leveraged its integrated and APIs for optimized performance on consumer hardware, sustaining Microsoft's revenue through ecosystem lock-in without requiring full system overhauls.

User and critic feedback

Critics generally praised Windows 98 for its refined , which integrated web-like elements such as and improved multimedia support via enhancements, making it more intuitive for everyday tasks compared to Windows 95. Publications like noted targeted performance gains in areas such as file access and hardware integration, though overall speed improvements were described as minor and selective rather than transformative. However, reviewers highlighted the operating system's incremental nature, building heavily on Windows 95's foundation without a full architectural overhaul, leading to critiques of it as a patchwork of fixes and add-ons. observed enhanced stability from better and driver support but pointed to persistent legacy code burdens that limited broader efficiency, terming it a "minor upgrade" suited primarily for consumer rather than shifts. Overall reactions varied, with some outlets like viewing it as offering conveniences one could "live with or without," reflecting a consensus on gains tempered by unmet expectations for radical . User feedback, captured in early post-release surveys, showed strong approval among consumers, particularly for home and small office use where ease-of-use and internet integration mattered most. A Technology Research Group (TRG) telephone survey of 285 U.S. Windows 98 users in July 1998 found 90 percent reported being "somewhat satisfied" or "very satisfied," with over 80 percent recommending it to others, attributing this to smoother Plug and Play hardware detection and built-in browser features that facilitated emerging online activities like those in internet cafes. This satisfaction aligned with retail data indicating rapid uptake, as initial sales exceeded 250,000 units on launch day, signaling broad consumer endorsement despite media narratives of hype.

Criticisms and technical limitations

Stability and reliability issues

Windows 98 exhibited notable stability issues stemming from its hybrid architecture, which integrated a 16-bit core with 32-bit Windows components, lacking robust memory isolation that allowed errors in legacy code to cascade into system-wide failures. Unlike the ring-based protection in , faults in the 16-bit subsystem—such as unhandled exceptions in virtual device drivers (s)—could trigger (BSOD) events without containment, often due to driver incompatibilities or timing sensitivities on faster hardware. This design choice prioritized with DOS applications over , resulting in crashes that required full reboots, as evidenced by contemporary analyses attributing many incidents to VxD handling of edge cases inferior to later WDM drivers. Driver conflicts exacerbated these problems, particularly with peripherals and graphics accelerators, where improper or handling in the 16-bit layer led to frequent BSODs during resource-intensive operations like playback or access. Empirical observations from forums and documentation of the period confirm that such issues arose from the unified shared by user and modes, enabling 16-bit code to directly alter critical structures like the , destabilizing multitasking under load. While hardware immaturity—such as inconsistent IRQ assignments on buses—contributed to some conflicts, the root causal mechanism lay in Windows 98's non-preemptively protected heritage, which acknowledged in design trade-offs favoring consumer compatibility over enterprise reliability. Multitasking reliability faltered under sustained heavy loads, as the system's preemptive scheduling applied primarily to 32-bit processes, while 16-bit applications operated cooperatively, prone to monopolizing CPU cycles if unresponsive and inducing excessive page faults from fragmented management. Stress scenarios, such as concurrent execution of multiple legacy apps, revealed higher fault rates than in equivalents, where protected subsystems prevented such propagation; this stemmed from Win32's reliance on the 16-bit (VDM) for compatibility, amplifying downtime through hangs rather than isolated app terminations. User anecdotes and diagnostic logs from the late 1990s consistently reported reboot frequencies of several times daily in demanding setups, though era-specific hardware variability—limited and volatile storage—amplified but did not originate these design-inherent limitations.

Security vulnerabilities

Windows 98 did not include a native , leaving internet-connected systems reliant on third-party software or router-based protections to block unauthorized inbound traffic. This omission heightened vulnerability to network-propagating threats, including exploiting unpatched services or integrated components like and . For example, early advisories from CERT noted flaws in Windows 98 that permitted remote or denial-of-service attacks via malformed inputs targeting Windows ME and 98 systems. Specific exploits included buffer overflows in handling UNC paths, allowing remote attackers to execute code by embedding hostile URLs in web pages or HTML emails viewed through Internet Explorer. Microsoft's Win32 API implementation in Windows 98 contained design gaps susceptible to message-based attacks, enabling local processes to inject code into privileged windows despite the system's single-user model lacking robust process isolation. Vulnerability databases document over 100 CVEs assigned to Windows 98 across its versions, encompassing remote execution, privilege abuse, and disclosure issues, many unpatched post-2006 end-of-support. issued security bulletins and hotfixes addressing these through 2006, including critical updates for flaws in components like the and handling. Compared to Unix systems, which enforced stricter user s and filesystem controls by default, Windows 98's open, DOS-derived architecture amplified exposure to but accelerated the market for third-party antivirus and tools.

Legal and regulatory controversies

Antitrust proceedings and bundling disputes

The , along with several states, filed an antitrust against on May 18, , accusing the company of violating Section 2 of the Sherman Act by leveraging its monopoly in operating systems to bundle with Windows, thereby harming competition in the market. The complaint centered on Microsoft's practices in Windows 98, which integrated more deeply than prior versions, allegedly to exclude rivals like by restricting original equipment manufacturers from promoting alternative browsers or removing Microsoft's icons. Free-market defenders countered that Netscape's decline—from over 90% in 1995 to around 50% by late —stemmed primarily from its own shortcomings, including bloated code, delayed feature updates, and failure to match 's seamless integration with Windows, rather than coercive bundling, as consumers empirically favored the free, performant alternative. Windows 98 shipped on June 25, 1998, shortly after the suit's filing, with Microsoft implementing a compliance tool in its Second Edition (released May 5, 1999) to allow partial components, though a federal appeals court later ruled that such technological integration did not constitute an antitrust violation under prior consent decrees. Economic critiques, including those from the , argued that the district court's findings ignored how bundling incentivized rapid innovation in browsing technology—evidenced by Internet Explorer's advancements in standards and speed—potentially deterring future R&D if regulators penalized integrated products that lowered consumer costs and expanded functionality. These analyses emphasized that claims overlooked dynamic , such as Netscape's inability to sustain leads despite early dominance and superior initial features, underscoring consumer-driven selection over artificial exclusion. In June 2001, the U.S. Court of Appeals for the D.C. unanimously overturned the district court's order to break into separate operating systems and applications companies, citing judicial bias and flawed remedies while upholding findings of monopolization maintenance but remanding for tailored conduct restrictions. The case settled in November 2001 with a imposing behavioral limits, such as sharing and OEM freedom, but avoiding structural divestiture; this outcome preserved Microsoft's unified structure, enabling continued heavy R&D investments—averaging billions annually post-2001—that drove subsequent innovations like improved in later Windows versions, vindicating arguments that aggressive antitrust intervention risked stifling technological progress in network industries.

End of life and legacy

Official support termination

Microsoft terminated mainstream support for Windows 98 and Windows 98 Second Edition on June 30, 2002, after which no new features, non-security fixes, or design changes were provided, though paid per-incident support remained available until the extended phase concluded. Extended support, encompassing security updates and critical fixes delivered primarily through Windows Update, persisted until July 11, 2006, aligning with Microsoft's fixed lifecycle policy that typically spans 10 years from release for consumer products like Windows 98, launched in 1998. This extension, announced in stages including a 2004 deferral from an earlier 2005 cutoff, addressed lingering enterprise and consumer deployments amid hardware compatibility challenges. As support waned, Microsoft recommended upgrading to , citing improved stability and security architectures incompatible with Windows 98's 16-bit/32-bit hybrid design, which limited patch efficacy against evolving threats like buffer overflows. Patch deployment via continued through the extended period, resolving documented vulnerabilities such as those in components, but ceased entirely post-July 2006, rendering systems reliant on unpatched code increasingly susceptible to exploits without vendor intervention. Migration data from 2003 indicated over 27% of PCs still ran or 98, with XP adoption accelerating thereafter as hardware refreshes facilitated transitions.

Cultural and technical influence

Windows 98 introduced the Windows Driver Model (WDM), marking the first consumer operating system to implement this architecture for device drivers, which enhanced hardware compatibility and functionality compared to prior versions. This model supported unified drivers for USB and other peripherals, enabling native USB integration without requiring additional OEM updates, as had been necessary for Windows 95. WDM's framework influenced subsequent Windows kernels, including and XP, by standardizing driver development for cross-OS compatibility and paving the way for broader hardware ecosystem growth, particularly in USB adoption that underpins connectivity for countless peripherals today. The operating system also advanced multimedia capabilities through 6.0, which improved 3D graphics acceleration and audio rendering, bridging legacy DOS-based games to more efficient Windows-native execution and setting precedents for API evolution in . This technical foundation ensured backward compatibility for software developed under earlier versions, facilitating a smoother transition for developers and users as shifted toward NT-kernel systems. Culturally, Windows 98's startup —composed in-house as an extension of Windows 95's ambient motifs—became emblematic of late-1990s , frequently evoked in films, memes, and nostalgic media to signify retro digital interfaces. Despite its iconic status, the sound's persistence waned with later Windows versions prioritizing silent boots for enterprise efficiency. In niche applications, Windows 98 endures in embedded systems like kiosks and industrial controllers, where vendors offer customized, minimal-footprint variants for legacy hardware stability, even into the , though such deployments face heightened security risks from unpatched vulnerabilities.

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