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The Compressed Zipped Folders option has been available in Windows since Windows 95. It allows users to compress files to save storage space and easily transfer them to other computers. While third-party utilities offer more features, Windows Compressed Folders are useful for basic compression needs. To create a new compressed folder, right-click on an empty area, select New, and then Compressed Zipped Folder. Name the folder and drag files into it. You can compare the sizes of original and compressed files in list view or through file Properties. Compressing multiple files into a single folder helps save space.