%0 Journal Article %T HDL IMPLEMENTATION OF DATA COMPRESSION: LZW ALGORITHM %A Simrandeep kaur %A V.Sulochana Verma %J International Journal of Advanced Technology & Engineering Research %D 2012 %I %X This paper presents LZW data compression algorithm which is implemented using finite state machine technique. The proposed algorithm enhances the performance by using less number of bits than their ASCII code, utilizing content addressable memory arrays. Thus the text data can be effec-tively compressed using the proposed algorithm. Simulation results using Xilinx tool shows an improvement in lossless data compression scheme. In addition to this, the proposed technique results in reduced storage space by 60.25% and increased compression rate by30.3%. %K Compression rate %K English and Binary text. %U Compression rate, English and Binary text.