Abstract: A method of reversibly compressing a sequence x(k) of information-carrying symbols, preferably digital signals which can assume Q discrete values, K being an index assuming integral number values, and consists in that the sequence x(k) is processed in means (1) to form a residue w(k), whereafter a modulo Q operation is carried out on the residue w(k). The modulo Q reducing sequence w(k) is finally encoded to form a compressed sequence n(k), which contains the same information as the original sequence x(k). In reconstructing the sequence x(k), the compressed sequence n(k) is decoded and subsequently processed in inversion means (5) to form a sequence y(k), on which a modulo Q operation is carried out, whereby the original sequence n(k) is obtained. An apparatus for carrying out the method includes means (1), means (2) for carrying out the modulo Q operations and an encoder (3).