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Automatically extracting terminology and index terms from scientific literature is useful for a variety of digital library, indexing and search applications. This task is non-trivial, complicated by domain-specific terminology and a steady introduction of new terminology. Correctly identifying nested terminology further adds to the challenge. We present a Dirichlet Process (DP) model of word segmentation where multiword segments are either retrieved from a cache or newly generated. We show how this DP-Segmentation model can be used to successfully extract nested terminology, outperforming previous methods for solving this problem.