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A nonparametric procedure is developed for determining a structure for multivariate, multiclass pattern classification. The resultant classifier is in the form of a layered machine which is composed of multithreshold elements. The basic algorithm determines partitions which are parallel hyperplanes orthogonal to the feature coordinate dimensions. Inherent in the procedure is the concept of a transgenerator unit used to establish new feature dimensions such that effective partitioning can be obtained. While the choice of which classes of transgeneration units to consider is ultimately up to the user, a number of such units are suggested herein. The algorithm gives an indication as to the effectiveness of various transgeneration units and hence can also be used in an interactive manner if so desired for the actual design of a classification structure.