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A new technique is proposed for constructing trellis codes. which provides an alternative to Ungerboeck's method of "set partitioning." The new codes use a signal constellation consisting of points from an -dimensional lattice , with an equal number of points from each coset of a sublattice . One part of the input stream drives a generalized convolutional code whose outputs are cosets of , while the other part selects points from these cosets. Several of the new codes are better than those previously known.