diff --git a/examples/CMakeLists.txt b/examples/CMakeLists.txt
index ee40f9823..194b74745 100644
--- a/examples/CMakeLists.txt
+++ b/examples/CMakeLists.txt
@@ -108,6 +108,7 @@ IF(DYNAMIC_OPENSCENEGRAPH)
     ADD_SUBDIRECTORY(osgtexture2D)
     ADD_SUBDIRECTORY(osgtexture3D)
     ADD_SUBDIRECTORY(osgtexturerectangle)
+    ADD_SUBDIRECTORY(osgtexturecompression)
     ADD_SUBDIRECTORY(osgthirdpersonview)
     ADD_SUBDIRECTORY(osgunittests)
     ADD_SUBDIRECTORY(osgvertexprogram)
diff --git a/examples/osgtexturecompression/CMakeLists.txt b/examples/osgtexturecompression/CMakeLists.txt
new file mode 100644
index 000000000..4341318b0
--- /dev/null
+++ b/examples/osgtexturecompression/CMakeLists.txt
@@ -0,0 +1,3 @@
+SET(TARGET_SRC osgtexturecompression.cpp )
+
+SETUP_EXAMPLE(osgtexturecompression)
diff --git a/examples/osgtexturecompression/osgtexturecompression.cpp b/examples/osgtexturecompression/osgtexturecompression.cpp
new file mode 100644
index 000000000..6106f2c22
--- /dev/null
+++ b/examples/osgtexturecompression/osgtexturecompression.cpp
@@ -0,0 +1,226 @@
+/* OpenSceneGraph example, osgtexture3D.
+*
+*  Permission is hereby granted, free of charge, to any person obtaining a copy
+*  of this software and associated documentation files (the "Software"), to deal
+*  in the Software without restriction, including without limitation the rights
+*  to use, copy, modify, merge, publish, distribute, sublicense, and/or sell
+*  copies of the Software, and to permit persons to whom the Software is
+*  furnished to do so, subject to the following conditions:
+*
+*  THE SOFTWARE IS PROVIDED "AS IS", WITHOUT WARRANTY OF ANY KIND, EXPRESS OR
+*  IMPLIED, INCLUDING BUT NOT LIMITED TO THE WARRANTIES OF MERCHANTABILITY,
+*  FITNESS FOR A PARTICULAR PURPOSE AND NONINFRINGEMENT. IN NO EVENT SHALL THE
+*  AUTHORS OR COPYRIGHT HOLDERS BE LIABLE FOR ANY CLAIM, DAMAGES OR OTHER
+*  LIABILITY, WHETHER IN AN ACTION OF CONTRACT, TORT OR OTHERWISE, ARISING FROM,
+*  OUT OF OR IN CONNECTION WITH THE SOFTWARE OR THE USE OR OTHER DEALINGS IN
+*  THE SOFTWARE.
+*/
+
+#include <osg/Node>
+#include <osg/Geometry>
+#include <osg/Notify>
+#include <osg/Texture2D>
+#include <osg/TexGen>
+#include <osg/Geode>
+
+#include <osgDB/ReadFile>
+
+#include <osgText/Text>
+
+#include <osgGA/TrackballManipulator>
+#include <osgViewer/CompositeViewer>
+
+#include <iostream>
+
+osg::Camera* createHUD(const std::string& label)
+{
+    // create a camera to set up the projection and model view matrices, and the subgraph to drawn in the HUD
+    osg::Camera* camera = new osg::Camera;
+
+    // set the projection matrix
+    camera->setProjectionMatrix(osg::Matrix::ortho2D(0,1280,0,1024));
+
+    // set the view matrix    
+    camera->setReferenceFrame(osg::Transform::ABSOLUTE_RF);
+    camera->setViewMatrix(osg::Matrix::identity());
+
+    // only clear the depth buffer
+    camera->setClearMask(GL_DEPTH_BUFFER_BIT);
+
+    // draw subgraph after main camera view.
+    camera->setRenderOrder(osg::Camera::POST_RENDER);
+
+    // we don't want the camera to grab event focus from the viewers main camera(s).
+    camera->setAllowEventFocus(false);
+
+    // add to this camera a subgraph to render
+    {
+
+        osg::Geode* geode = new osg::Geode();
+
+        std::string font("fonts/arial.ttf");
+
+        // turn lighting off for the text and disable depth test to ensure its always ontop.
+        osg::StateSet* stateset = geode->getOrCreateStateSet();
+        stateset->setMode(GL_LIGHTING,osg::StateAttribute::OFF);
+
+        osg::Vec3 position(150.0f,150.0f,0.0f);
+
+        osgText::Text* text = new  osgText::Text;
+        geode->addDrawable( text );
+
+        text->setFont(font);
+        text->setPosition(position);
+        text->setCharacterSize(100.0f);
+        text->setText(label);
+
+        camera->addChild(geode);
+    }
+
+    return camera;
+}
+
+osg::Node* creatQuad(const std::string& name, 
+                     osg::Image* image, 
+                     osg::Texture::InternalFormatMode formatMode,
+                     osg::Texture::FilterMode minFilter)
+{
+
+    osg::Group* group = new osg::Group;
+    
+    {
+        osg::Geode* geode = new osg::Geode;
+
+        geode->addDrawable(createTexturedQuadGeometry(
+                osg::Vec3(0.0f,0.0f,0.0f),
+                osg::Vec3(float(image->s()),0.0f,0.0f),
+                osg::Vec3(0.0f,0.0f,float(image->t()))));
+
+        geode->setName(name);
+
+        osg::StateSet* stateset = geode->getOrCreateStateSet();
+
+        osg::Texture2D* texture = new osg::Texture2D(image);
+        texture->setInternalFormatMode(formatMode);
+        texture->setFilter(osg::Texture::MIN_FILTER, minFilter);
+        stateset->setTextureAttributeAndModes(0, texture, osg::StateAttribute::ON);
+        
+        group->addChild(geode);
+    }
+    
+    {
+        group->addChild(createHUD(name));
+    }
+    
+    return group;
+}
+
+int main(int argc, char** argv)
+{
+    osg::ArgumentParser arguments(&argc, argv);
+
+    // construct the viewer.
+    osgViewer::CompositeViewer viewer(arguments);
+    
+    if (arguments.argc()<=1)
+    {
+        std::cout<<"Please supply an image filename on the commnand line."<<std::endl;
+        return 1;
+    }
+    
+    std::string filename = arguments[1];
+    osg::ref_ptr<osg::Image> image = osgDB::readImageFile(filename);
+    
+    if (!image)
+    {
+        std::cout<<"Error: unable able to read image from "<<filename<<std::endl;
+        return 1;
+    }
+
+    osg::GraphicsContext::WindowingSystemInterface* wsi = osg::GraphicsContext::getWindowingSystemInterface();
+    if (!wsi) 
+    {
+        osg::notify(osg::NOTICE)<<"Error, no WindowSystemInterface available, cannot create windows."<<std::endl;
+        return 1;
+    }
+
+
+    unsigned int width, height;
+    wsi->getScreenResolution(osg::GraphicsContext::ScreenIdentifier(0), width, height);
+
+    osg::ref_ptr<osg::GraphicsContext::Traits> traits = new osg::GraphicsContext::Traits;
+    traits->x = 0;
+    traits->y = 0;
+    traits->width = width;
+    traits->height = height;
+    traits->windowDecoration = false;
+    traits->doubleBuffer = true;
+    
+    osg::ref_ptr<osg::GraphicsContext> gc = osg::GraphicsContext::createGraphicsContext(traits.get());
+    if (!gc)
+    {
+        std::cout<<"Error: GraphicsWindow has not been created successfully."<<std::endl;
+    }
+
+    gc->setClearColor(osg::Vec4(0.0f,0.0f,0.0f,1.0f));
+    gc->setClearMask(GL_COLOR_BUFFER_BIT | GL_DEPTH_BUFFER_BIT);
+
+    osg::ref_ptr<osgGA::TrackballManipulator> trackball = new osgGA::TrackballManipulator;
+    
+    typedef std::vector< osg::ref_ptr<osg::Node> > Models;
+    
+    Models models;
+    models.push_back(creatQuad("no compression", image.get(), osg::Texture::USE_IMAGE_DATA_FORMAT, osg::Texture::LINEAR));
+    models.push_back(creatQuad("ARB compression", image.get(), osg::Texture::USE_ARB_COMPRESSION, osg::Texture::LINEAR));
+    models.push_back(creatQuad("DXT1 compression", image.get(), osg::Texture::USE_S3TC_DXT1_COMPRESSION, osg::Texture::LINEAR));
+    models.push_back(creatQuad("DXT3 compression", image.get(), osg::Texture::USE_S3TC_DXT3_COMPRESSION, osg::Texture::LINEAR));
+    models.push_back(creatQuad("DXT5 compression", image.get(), osg::Texture::USE_S3TC_DXT5_COMPRESSION, osg::Texture::LINEAR));
+    
+    int numX = 1;
+    int numY = 1;
+
+    // compute the number of views up and across that are need
+    {
+        float aspectRatio = float(width)/float(height);
+        float multiplier = sqrtf(float(models.size())/aspectRatio);;
+        float multiplier_x = multiplier*aspectRatio;
+        float multiplier_y = multiplier;
+
+
+        if ((multiplier_x/ceilf(multiplier_x)) > (multiplier_y/ceilf(multiplier_y)))
+        {
+            numX = int(ceilf(multiplier_x));
+            numY = int(ceilf(float(models.size())/float(numX)));
+        }
+        else
+        {
+            numY = int(ceilf(multiplier_y));
+            numX = int(ceilf(float(models.size())/float(numY)));
+        }
+    }
+
+    // populate the view with the required view to view each model.
+    for(unsigned int i=0; i<models.size(); ++i)
+    {
+        osgViewer::View* view = new osgViewer::View;
+        
+        int xCell = i % numX;
+        int yCell = i / numX;
+    
+        int vx = int((float(xCell)/float(numX)) * float(width));
+        int vy = int((float(yCell)/float(numY)) * float(height));
+        int vw =  int(float(width) / float(numX));
+        int vh =  int(float(height) / float(numY));
+
+        view->setSceneData(models[i].get());
+        view->getCamera()->setProjectionMatrixAsPerspective(30.0, double(vw) / double(vh), 1.0, 1000.0);
+        view->getCamera()->setViewport(new osg::Viewport(vx, vy, vw, vh));    
+        view->getCamera()->setGraphicsContext(gc.get());
+        view->getCamera()->setClearMask(0);
+        view->setCameraManipulator(trackball.get());
+
+        viewer.addView(view);
+    }
+
+    return viewer.run();
+}