mod_pagespeed includes several filter that optimise JavaScript, HTML and CSS stylesheets. It also includes filters for optimizing JPEG and PNG images. The filters are based on a set of best practices known to enhance web page performance. Webmasters who set up mod_pagespeed in addition to configuring proper caching and compression on their Apache distribution should expect to see an improvement in the loading time of the pages on their websites.
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source:http://linuxpoison.blogspot.com/2010/11/135781677519290.html