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With a rapid increase of image resolution in recent mobile video systems, the memory bandwidth and power consumption have surfaced as critical problems in video coding. Despite many embedded compression algorithms proposed to overcome these problems, no proper algorithms have yet been reported with high enough throughput and no quality loss. This paper first proposes a lossless embedded compression algorithm with high compression ratio along with the hardware architecture for high throughput. Experimental results show that the proposed algorithm achieves at least 60% data compression without quality loss and bitrate increment. Moreover, the latency of the proposed architecture is sufficient to meet the real-time requirement of high-definition video coding, i.e., 30 cycles/macroblock. The proposed algorithm can be implemented with about 28 K gates.