We present the first (polynomial-time) algorithm for reducinga given deterministic finite state automaton (DFA) intoa hyper-minimized DFA, which may have fewer states thanthe classically minimized DFA. The price we pay is that thelanguage recognized by the new machine can differ from theoriginal on a finite number of inputs. These hyper-minimizedautomata are optimal, in the sense that every DFA with fewerstates must disagree on infinitely many inputs. With smallmodifications, the construction works also for finite statetransducers producing outputs. Within a class of finitely differing languages, thehyper-minimized automaton is not necessarily unique. There mayexist several non-isomorphic machines using the minimum number ofstates, each accepting a separate language finitely-differentfrom the original one. We will show that there are largestructural similarities among all these smallest automata.