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The Cornell electron storage ring (CESR) phase-III upgrade plan includes very strong permanent magnet quadrupoles in front of the cryostat for the superconducting quadrupoles and physically as close as possible to the interaction point. Together with the superconducting quadrupoles, they provide tighter vertical focusing at the interaction point. The quadrupoles are built with neodymium iron boron (NdFeB) material and operate inside the 15 kG solenoid field. Requirements on the field quality and stability of these quadrupoles are discussed and test results are presented.