Abstract: A multi-channel audio compression technology is presented that extends the range of sampling frequencies compared to existing technologies and/or lowers the noise floor while remaining compatible with those earlier generation technologies. The high-sampling frequency multi-channel audio is decomposed into core audio up to the existing sampling frequencies and a difference signal up to the sampling frequencies of the next generation technologies. The core audio is encoded using a first generation technology such as DTS, Dolby AC-3 or MPEG I or II such that the encoded core bit stream is fully compatible with a comparable decoder in the market. The difference signal is encoded using technologies that extend the sampling frequency and/or improve the quality of the core audio. The compressed difference signal is attached as an extension to the core bit stream. The extension data will be ignored by the first generation decoders but can be decoded by the second generation decoders.