In this paper, the problem of sensitivity, reduction by feedback is formulated as an optimization problem and separated from the problem of stabilization. Stable feedback schemes obtainable from a given plant are parameterized. Salient properties of sensitivity reducing schemes are derived, and it is shown that plant uncertainty reduces the ability, of feedback to reduce sensitivity. The theory is developed for input-output systems in a general setting of Banach algebras, and then specialized to a class of multivariable, time-invariant systems characterized by

matrices of

frequency response functions, either with or without zeros in the right half-plane. The approach is based on the use of a weighted seminorm on the algebra of operators to measure sensitivity, and on the concept of an approximate inverse. Approximate invertibility, of the plant is shown to be a necessary and sufficient condition for sensitivity reduction. An indicator of approximate invertibility, called a measure of singularity, is introduced. The measure of singularity of a linear time-invariant plant is shown to be determined by the location of its right half-plane zeros. In the absence of plant uncertainty, the sensitivity, to output disturbances can be reduced to an optimal value approaching the singularity, measure. In particular, if there are no right half-plane zeros, sensitivity can be made arbitrarily small. The feedback schemes used in the optimization of sensitivity resemble the lead-lag networks of classical control design. Some of their properties, and methods of constructing them in special cases are presented.