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3D mesh compression and segmentation are two active areas of 3D object modeling. Most existing 3D compression algorithms compress the whole object to reduce the local storage requirement and the delays in transmitting objects over the Internet. However, in some interactive applications, the client may be interested in particular section(s) of the object. The server needs to segment the object into pans and send them individually or sequentially. This paper presents a segmentation based 3D mesh compression scheme that can meet this requirement. We propose an efficient eXtend Multi-Ring neighborhood (XMR) based 3D mesh segmentation algorithm that decomposes the object into meaningful regions. Then we compress them separately and put them into one stream. The common boundary triangles that are used for adhering the regions together are processed and appended to the end of the stream. We call this a region-conquer-and-stitch scheme.