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We propose a new algorithm for compressing three-dimensional triangularmesh data used for representing surfaces. We apply the Estimation-Quantization(EQ) algorithm originally designed for still image compressionto the normal mesh wavelet coefficients. The EQ algorithm models thewavelet coefficients as a Gaussian random field with slowly varying standarddeviation. By designing the quantizers in a rate-distortion optimal fashion,we improve upon the recently proposed zerotree normal mesh compressionalgorithm by 0.5 to 1 dB in distortion.