A redundancy replacement system is described. Whenever

bits of an

-bit word are identical with corresponding bits in the preceding word, these bits are replaced by

bits from a second source. An extra bit is added to each word to signal the substitution. If words with

redundant bits occur with probability

, one gains an extra channel of average capacity

. The system is analyzed as a data compressor that enhances the source entropy by replacing redundancies. An effective data compression of 2.11 is obtained for typical voice sources.