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Why is the compression rate of the new Office 2007 file format smaller than the rate of normal Office files?

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Why is the compression rate of the new Office 2007 file format smaller than the rate of normal Office files?

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Office 2007 files are generally smaller compared to files created by previous versions. It has also its reason in the new XML extension. When I extract images from a PowerPoint or Word or Excel file, where are the pictures stored? Find the extracted pictures in the output folder which is set in the PowerShrink settings menu.

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