An unfold/fold program transformation system which extends the unfold/fold transformations of H. Tamaki and T. Sato is presented in this paper. The system consists of unfolding, simultaneous folding, and generalization + equality introduction rules. The simultaneous folding rule permits the folding of a set of folded clauses into a single clause, using a set of folding clauses, while the generalization + equality introduction rule facilitates the application of the simultaneous folding rule by performing appropriate abstractions. A proof of the correctness of the proposed transformations in the sense of the least Herbrand model semantics of the program is also presented.