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This paper describes a localization method with wearable electromagnetic sensor and orientation sensor for wearable computer users. Many user localization methods have been investigated to realize location-based services in a wide environment. The localization methods usually employ a hybrid approach in which user's position is estimated by using positioning infrastructures and dead reckoning such as a pedometer. However, the installation cost of infrastructures increases when the area expands, and the error of the pedometer is frequently caused by failures in walking locomotion detection and the difference between ideal and estimated step lengths. If the relative distance is accurately estimated by dead reckoning approach, the installation cost of infrastructures can be reduced. This paper proposes a new localization method that improves the estimation accuracy of step length in dead reckoning approach. The proposed method measures user's orientation and geometrical relationship between user's heel and waist with an orientation sensor and an electromagnetic tracker attached to user's body. When both feet come into contact with the ground, user's position is updated by adding the estimated step length which means the relationship between user's heels and the position estimated in the previous step. The proposed localization method has been experimented using a prototype system to evaluate the accuracy of the proposed method.