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Compress.exe: File Compression Utility
From the Resource Kit

This command-line tool can compress one or more files. These compressed files can be expanded with Expand.exe: File Expansion Utility

Compress Syntax

compress [-r] [-d] [-zx] [-z] [-zq[n]] Source Destination [-?]
-Or-
compress -r [-d] [-zx] [-z] [-zq[n]] Source [Destination] [-?]
Where:
-r        renames expanded files.
-d       updates compressed files only if out of date.
-zx      uses LZX compression.
-z        uses MS-ZIP compression.
-zq[n]  uses quantum compression. Optional level n must be in the range 1 to 7. The default is 4.
 

Source     specifies the source file. The * and ? wildcard characters can be used.

Destination   specifies the destination file or path. The destination can be a folder. If source specifies multiple files and -r is not specified, then destination must be a folder.