Abstract: A method for compressing a stream of data signals into a compressed stream of code signals is provided. The compression method including: storing strings of the data signals encountered in the stream of data signals in a dictionary, the stored strings each having a corresponding code signal; searching the stream of data signals by comparing the stream to the stored strings to determine the longest match therewith; searching the remaining stream of data signals by comparing the remaining stream to the stored strings to determine the longest match therewith; inserting into the dictionary an extended string made up of the longest match with the stream of data signals extended by the longest match with the remaining stream of said data signals; and assigning a code signal corresponding to the stored extended string.