The same high dimensionality of hyperspectral imagery that facilitates detection of subtle differences in spectral response due to differing chemical composition also hinders the deployment of traditional statistical pattern-classification procedures, particularly when relatively few training samples are available. Traditional approaches to addressing this issue, which typically employ dimensionality reduction based on either projection or feature selection, are at best suboptimal for hyperspectral classification tasks. A divide-and-conquer algorithm is proposed to exploit the high correlation between successive spectral bands and the resulting block-diagonal correlation structure to partition the hyperspectral space into approximately independent subspaces. Subsequently, dimensionality reduction based on a graph-theoretic locality-preserving discriminant analysis is combined with classification driven by Gaussian mixture models independently in each subspace. The locality-preserving discriminant analysis preserves the potentially multimodal statistical structure of the data, which the Gaussian mixture model classifier learns in the reduced-dimensional subspace. Experimental results demonstrate that the proposed system significantly outperforms traditional classification approaches, even when few training samples are employed.