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Ternary content addressable memories (TCAMs) have been emerging as a popular device in designing routers for packet forwarding and classifications. Despite their premise on high-throughput, large TCAM arrays are prohibitive due to their excessive power consumption and lack of scalable design schemes. We present a TCAM-based router architecture that is energy and storage efficient. We introduce prefix aggregation and expansion techniques to compact the effective TCAM size in a router. Pipelined and paging schemes are employed in the architecture to activate a limited number of entries in the TCAM array during an IP lookup. The new architecture provides low power, fast incremental updating, and fast table look-up. Heuristic algorithms for page filling, fast prefix update, and memory management are also provided. Results have been illustrated with two large routers (bbnplanet and attcanada) to demonstrate the effectiveness of our approach.