1. A method for compressing an input stream of data being transferred from an input buffer to an output buffer, said input data stream composed of a series of data bytes including at least one repeated data byte that repeats a previous data byte in said series of data bytes, said method comprising the steps of: reading each data byte in said series of data bytes; determining whether said each data byte is a repeated data byte; replacing said repeated data byte by a pointer that indicates the location of said previous data byte, said series of data bytes then containing pointers and remaining data bytes; establishing a flag bit for said repeated byte; storing temporarily said flag bit in a flag bit buffer; writing said remaining data bytes and said pointers to said output buffer as an output series of data bytes; and writing said flag bit from said temporary flag bit buffer to said output buffer at the end of said output series.