The following theorem is proved. THEOREM. Let X be a homogeneous continuum such that Hl(X) ^ 0. Ij'$/ is the collection of maximal terminal proper subcontinua of X, then (1) The collection ff is a monotone, continuous, terminal decomposition ofX, (2) The nondegenerate elements of%? are mutually homeomorphic, indecomposable, cell-like, terminal, homogeneous continua of the same dimension as X, (...