At the assembly, Otto II appointed Conrad (a distant relative of Otto II) and Henry III as the new Dukes of Swabia and Bavaria respectively. Henry III had previously been exiled by Otto II following his defeat as part of a two-year revolt against Otto II's rule. The defeat at Stilo cost the Empire many nobles, forcing Otto II to end Henry's banishment in order to stabilize domestic affairs in Germany while he campaigned against the Muslims and Byzantines in southern Italy. Also, the appointment of Conrad I allowed the House of the Conradines to return to power in Swabia for the first time since 948. Otto II and the assembled nobles agreed on a strategy of naval blockade and economic warfare until reinforcements from Germany could arrive. Otto II then prepared for a new campaign against the Muslims and obtained a settlement with the Republic of Venice, whose assistance he needed following the destruction of his army at Stilo. However, the death of Otto II the next year and the resulting civil war prevented the Empire from appropriately responding to the defeat.