A new class of codes for data compression is described that combines permutations with the fast Hadamard transform (FHT). It was invented for digital speech compression based on linear predictive coding (LPC), but may be useful for other data compression applications. One particular code with rate

is considered: a

-bit code for a block length of

samples. All coding and decoding steps are fast, so that real-time applications with cheap hardware can be anticipated.