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There are many tools for Windows that promise all of the compression and archiving functionality that anyone could ever need. The vast majority of them can handle ZIP, the most commonly-used compression format, along with a number of other popular formats, such as 7z, RAR, TAR, and GZIP.
7-Zip is one of these tools, it has a very high compression rate and a user friendly interface. You can get it at http://www.7-zip.org/download.html