A novel model of associative memory with biorthogonal properties, which can be viewed as an improved version of T. Kohonen's linear model of associative memory, is presented in this paper. An iterative algorithm is developed, which makes our model directly employed without any limit condition. Several characteristics of our model which are very similar to biological phenomena are also discussed. It is shown that the optimal value of an associative memory can always be obtained in our model. Some concluding remarks with respect to this model also are given.