The paper presents new clustering algorithm. The

proposed algorithm gives less distortion as compared to well

known Linde Buzo Gray (LBG) algorithm and Kekre’s

Proportionate Error (KPE) Algorithm. Constant error is added

every time to split the clusters in LBG, resulting in formation of

cluster in one direction which is 1350 in 2-dimensional case.

Because of this reason clustering is inefficient resulting in high

MSE in LBG.