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A redundancy replacement system is described. Whenever bits of an -bit word are identical with corresponding bits in the preceding word, these bits are replaced by bits from a second source. An extra bit is added to each word to signal the substitution. If words with redundant bits occur with probability , one gains an extra channel of average capacity . The system is analyzed as a data compressor that enhances the source entropy by replacing redundancies. An effective data compression of 2.11 is obtained for typical voice sources.