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We propose a new algorithm to the problem of state reduction in incompletely specified finite state machines. This algorithm is not based on the enumeration of compatible sets, and, therefore, its performance is not dependent on the number of prime compatibles. We prove that the algorithm is exact and present results that show that, in a set of hard problems, it is much more efficient than both the explicit and implicit approaches based on the enumeration of compatible sets.doi:10.1145/288548.289075 dblp:conf/iccad/PenaO98 fatcat:eunnhfoxrje3ri32klnh5lawem