  This paper is an extended abstract of an analysis of term rewriting where the
terms in the rewrite rules as well as the term to be rewritten are compressed
by a singleton tree grammar (STG). This form of compression is more general
than node sharing or representing terms as dags since also partial trees
(contexts) can be shared in the compression. In the first part efficient but
complex algorithms for detecting applicability of a rewrite rule under
STG-compression are constructed and analyzed. The second part applies these
results to term rewriting sequences.
  The main result for submatching is that finding a redex of a left-linear rule
can be performed in polynomial time under STG-compression.
  The main implications for rewriting and (single-position or parallel)
rewriting steps are: (i) under STG-compression, n rewriting steps can be
performed in nondeterministic polynomial time. (ii) under STG-compression and
for left-linear rewrite rules a sequence of n rewriting steps can be performed
in polynomial time, and (iii) for compressed rewrite rules where the left hand
sides are either DAG-compressed or ground and STG-compressed, and an
STG-compressed target term, n rewriting steps can be performed in polynomial
time.
