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A new method for segmenting images using abrupt changes in intensity (edge points) to separate regions of smoothly varying intensity is discussed. Region segmentation using edge points has not been very successful in the past because small gaps would allow merging of dissimilar regions. The present method uses an expansion-contraction technique in which the edge regions are first expanded to close gaps and then contracted after the separate uniform regions have been identified. In order to preserve small uniform regions, the process is performed iteratively from small to large expansions with no expansion for edge regions that separate different uniform regions. The final result is a set of uniform intensity regions (usually less than 100) and a set of edge boundary regions. The program has successfully segmented scenes with industrial parts, landscapes, and integrated circuit chips.