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The state reduction of sequential networks is achieved by selecting a minimal set of prime C-classes satisfying the cover and closure requirements. The derivation of all the C-classes and subsequent prime C-classes has been illustrated by Grasselli and Luccio  and relies on maximal C-class decomposition. In this note, an alternative method for deriving the prime C-classes is described. The method does not involve the maximal C-classes and is algorithmically easier to implement.