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We propose a simple and effective lossless compression algorithm for video display frames. It combines the dictionary coding, the Huffman coding, and three proposed innovative schemes to achieve a high compression ratio. We quantitatively analyze the characteristics of display frame data for designing the algorithm. We first propose a two-stage classification scheme to classify all pixels into three categories. Then we employ the dictionary coding and propose an adaptive prefix bit truncation scheme to generate codewords for video pixels in each category. We subsequently employ the Huffman coding scheme to assign bit values to the codewords. Finally, we propose a head code compression scheme to further reduce the size of the codeword bits. Experimental results show that the proposed algorithm achieves 22% more reduction than prior arts.