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Privacy preservation becomes more important task in various areas like business and social environment. In both the areas hiding privacy information is necessary to hiding personal information of users from others. We propose a new knowledge hiding and privacy preserving methodology using state transitional matrix. We generate transitional matrix from the large transaction data set, which will be published for other users of the business or social environment. Published data could be used to infer some knowledge but they could not back track the personal information from the sanitized data base. The proposed method is a simpler one which reduces the time and space complexity.