I am using the latest ImageMagick:
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Version: ImageMagick 6.6.1-4 2010-04-21 Q16 http://www.imagemagick.org
Copyright: Copyright (C) 1999-2010 ImageMagick Studio LLC
Features: OpenMP
The image was created using the following command:
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convert IMAGE.tif -define tiff:tile-geometry=128x128 -format tiff -compress jpeg -quality 70 ptif:IMAGE.jpg.pyr.tif