The stabilization problem for a class of switched neutral systems with a discrete time-varying delay is studied in this paper. The upper bound of derivative of the discrete time-varying delay can be an arbitrary given constant which is not necessary to be less than one. Each subsystem is not assumed to be stable. A hysteresis switching law is designed based on multiple Lyapunov functionals to avoid sliding modes and chattering phenomena. The obtained delay-dependent stabilization criterion is given in terms of linear matrix inequalities (LMIs). The result is illustrated by an example.

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