ATI has released a library for compressing textures. It's used in their new tool called The Compressinator and is available for 3rd party companies to make use of.

"It can compress to a wide range of compression formats including ATI2N, DXT & swizzled DXT formats. It also supports conversion of textures between 8bit fixed, 16bit fixed & 32bit float formats."


Get more information about it at www.ati.com/developer/