Real-time digital audio compression/decompression system

Digitized audio information is compressed by retrieving a first audio sample from a digitized audio signal and storing it in its entire, uncompressed, form. The next audio sample is then retrieved and a signed difference between the first audio sample value and the next audio sample value is computed. If this difference value can be represented in fewer data segments than would be required to represent the next audio sample, the difference value is stored, rather than the value of the next sample, otherwise the next sample is stored. The invention proceeds in this fashion until the entire PCM audio signal is compressed and stored. The compressed data stream is decompressed to generate an output data stream by retrieving a stored sample and examining it to ascertain whether it is a difference value or a flag which indicates that the following data represents a coded amplitude value. If the sample is a difference value it is digitally added to the previous value (taking into account the sign) and the sum is inserted into the output data stream. The sum value is retained in order to be used to compute the next output value if the following sample is also a difference value. Alternatively, if the sample is a flag value it is discarded and the next sample is retrieved and inserted into the output data stream.