The purpose of this paper is to show that neural networks may be promi
sing tools for data compression without loss of information, We combin
e predictive neural nets and statistical coding techniques to compress
tent files. We apply our methods to certain short newspaper articles
and obtain compression ratios exceeding those of the widely used Lempe
l-Ziv algorithms (which build the basis of the UNIX functions ''compre
ss'' and ''gzip''). The main disadvantage of our methods is that they
are about three orders of magnitude slower than standard methods.