A necessary and sufficient condition is given for the exact reduction of systems modeled by linear fractional transformations (LFT＇s) on structured operator sets. This condition is based on the existence of a rank-deficient solution to either of a pair of linear matrix inequalities which generalize Lyapunov equations; the notion of Gramians is thus also generalized to uncertain systems, as well as Kalman-like decomposition structures. A related minimality condition, the converse of the reducibility condition, may then be inferred from these results and the equivalence class of all minimal LFT realizations defined. These results comprise the first stage of a complete generalization of realization theory concepts to uncertain systems. Subsequent results, such as the definition of and rank tests on structured controllability and observability matrices are also given. The minimality results described herein are applicable to multidimensional system realizations as well as to uncertain systems; connections to formal powers series representations also exist.