Different techniques have been proposed so far in steganography to embed a message. These techniques do not employ compression or encryption before embedding the message. The message is compressed or encrypted separately. A separate software module is required that needs more time and resources. Traditional software compression produces high overhead during compression stage in case of small message size. In order to overcome these problems we present a novel algorithm with higher embedding efficiency that incorporates compression, encryption and security along with a novel technique to hide a message. The message is pre-processed using a table of values. The values are created from the characters in the message. The technique splits a character code into two smaller parts. These are embedded at different locations to enhance the security. The main advantage of the algorithm is that the embedding efficiency increases as the embedding load is increased to the maximum value. A 24-bit RGB file is used as cover. Various parameters like Peak Signal to Noise Ratio (PSNR) and Structural Similarity Index (SSIM) of image are calculated. The results show that the proposed algorithm achieves better performance and embedding efficiency.

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