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A set of equally long finite sequences, the elements of which are either + 1 or - 1, is said to be a complementary set of sequences if the sum of autocorrelation functions of the sequences in that set is zero except for a zero-shift term. A complementary set of sequences is said to be a mate of another set if the sum of the cross-correlation functions of the corresponding sequences in these two sets is zero everywhere. Complementary sets of sequences are said to be mutually orthogonal complementary sets if any two of them are mates to each other. In this paper we discuss the properties of such complementary sets of sequences. Algorithms for synthesizing new sets from a given set are given. Recursive formulas for constructing mutually orthogonal complementary sets are presented. It is shown that matrices consisting of mutually orthogonal complementary sets of sequences can be used as operators so as to per form transformations and inverse transformations on a one- or two-dimensional array of real time or spatial functions. The similarity between such new transformations and the Hadamard transformation suggests applications of such new transformations to signal processing and image coding.