It has been reported that analog test stimulus generation may be realized by low pass filtering a sigma-delta modulated 1-bit data stream. However, for BIST (Built-In Self-Test) applications, the available storage for storing the bit steam may limit the quality of the generated analog signal. In this thesis, we first identify a high-quality bit stream that meets the test signal specification. Then we implement the software encoder to compress the bit stream, and the corresponding hardware decoder (to be implemented on-chip) to decompress the bit stream for analog signal generation.