A redundancy replacement system is described. Whenevermbits of ann-bit word are identical with corresponding bits in the preceding word, these bits are replaced bymbits from a second source. An extra bit is added to each word to signal the substitution. If words withmredundant bits occur with probabilityP(m), one gains an extra channel of average capacitymP(m) -- 1. 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.