The ADV601 is a very low cost, single chip, dedicated function, all digital CMOS VLSI device capable of supporting visually loss-less to 350:1 real-time compression and decompression of CCIR-601 digital video at very high image quality levels. The chip integrates glueless video and host interfaces with on-chip SRAM to permit low part count, system level implementations suitable for a broad range of applications.