P. M. Long, A. I. Natsev and J. S. Vitter. Text compression via alphabet re-representation. Neural Networks, 12(4-5):755-776, 1999.

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Abstract
This paper introduces the notion of alphabet re-representation in the context of text compression. We consider re-representing the alphabet so that a representation of a character reflects its properties as a predictor of future text. This enables us to use an estimator from a restricted class to map contexts to predictions of upcoming characters. We describe an algorithm that uses this idea in conjunction with neural networks. The performance of our implementation is compared to other compression methods, such as UNIX compress, gzip, PPMC, and an alternative neural network approach.