A finite state machine (FSM) is said to have finite memory ? if ? is the least integer such that yk= f(Xk, Xk-1,... Xk-?, Yk-1, ... ?k-?) where ykand Xkrepresent the output and input at time k. If no such ? exists, then by convention the memory is said to be infinite. It has been observed [1] that if the memory of a p-nary input, q-nary output n-state minimal nondegenerate FSM is finite, then the memory ? is bounded as follows: Recently, considerable attention has been devoted to the study of the upper bound on ? [2]-[5]. In this paper we examine the lower bound on ?. We show that the lower bound is tight for all positive integers n and certain values of p and q. We also show that when n = 4^k, k a positive integer, there exist binary input, binary output minimal FSMs with minimal memory. It will be seen that this is equivalent to showing that for all positive integers ? there exist binary input, binary output minimal FSMs with the maximum number of states n=2^2?. Finally, we enumerate the equivalence classes of these finite memory machines with memory ? and n = 2^2?states.