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The Lempel-Ziv-Welch (LZW) algorithm has provided attractive data compression for storage medium with limited space. This study is motivated to improve database performance by compressing some of its attributes using LZW compression algorithm. Simulation results show that LZW is useful for practical purposes. Data compression will speed up data transmittal since the amount of memory needed is reduced including the amount of data to be stored. Data compression provides additional level of data integrity and reliability.