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In the present paper, a software based effective ECG data compression algorithm is proposed. The whole algorithm is written in C- platform. The algorithm is tested on various ECG data of all the 12 leads taken from PTB Diagnostic ECG Database (PTB-DB). In this compression methodology, individual standard deviation of each part of the signal is calculated at first. To achieve a strict loss less compression in regions of high standard deviation and a tolerable lossy compression in rest of the signal, two different compression algorithms have developed. It is observed that this proposed algorithm can reduce the file size significantly. The data reconstruction algorithm has also been developed using the reversed logic and it is seen that data is reconstructed preserving the significant ECG signal morphology.