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This correspondence elucidates the importance of similarity, as modeled by a measure of similarity, in approximate reasoning. A set of axioms is proposed to compute a reasonable measure of similarity between two imprecise concepts represented as fuzzy sets. For approximate reasoning, a similarity index between the fact and the antecedent of a rule is computed and is used in the reasoning mechanism. Accordingly, the existing reasoning mechanism is modified. A new similarity-based approximate reasoning methodology is proposed. As an illustration of its effectiveness, the proposed mechanism is used to develop a rule-based pattern classifier.