This article introduces the concept of alphabet re-representation in the co
ntext of text compression. We consider re-representing the alphabet so that
a representation of a character reflects its properties as a predictor of
future rest. This enables us to use an estimator from a restricted class to
map contexts to predictions of upcoming characters. We describe an algorit
hm that uses this idea in conjunction with neural networks. The performance
of our implementation is compared to other compression methods, such as UN
IX compress, gzip, PPMC, and an alternative neural network approach. (C) 19
99 Elsevier Science Ltd. All rights reserved.