MP3 Development 3

MPEG-1 Audio Layer 2 encoding began as the Digital Audio Broadcast (DAB) project managed by Egon Meier-Engelen of the Deutsche Forschungs- und Versuchsanstalt für Luft- und Raumfahrt (later on called Deutsches Zentrum für Luft- und Raumfahrt, German Aerospace Center) in Germany. This project was financed by the European Union as a part of the EUREKA research program where it was commonly known as EU-147, which ran from 1987 to 1994.
As a doctoral student at Germany's University of Erlangen-Nuremberg, Karlheinz Brandenburg began working on digital music compression in the early 1980s, focusing on how people perceive music. He completed his doctoral work in 1989 and became an assistant professor at Erlangen-Nuremberg. While there, he continued to work on music compression with scientists at the Fraunhofer Society (in 1993 he joined the staff of the Fraunhofer Institute). Reference : http://en.wikipedia.org/wiki/Mp3