This paper describes an online lossless data-compression method using adapt
ive arithmetic coding. To achieve good compression efficiency, we employ an
adaptive fuzzy-tuning modeler that applies fuzzy inference to deal efficie
ntly with the problem of conditional probability estimation, In comparison
with other lossless coding schemes, the compression results of the proposed
method are good and satisfactory for various types of source data. Since w
e adopt the table-lookup approach for the fuzzy-tuning modeler, the design
is simple, fast, and suitable for VLSI implementation.