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In order to add/delete a category in your blog, log in to the admin area and go to Posts -> Categories.
To add a category, simply type its name in the Category Name field. If you wish, you can also type a category slug, description and choose a parent item. Then click Add Category and your new category will be created.
To delete an existing category, hover over it and then click the Delete button.
For a a video tutorial on how to add/delete categories in WordPress, click Play Video on the screen below.
Find more useful WordPress videos at WordPress.tv.