The number of people that now go on to develop Alzheimer's disease (AD) and other types of dementia is rapidly rising. For maximum benefits from new treatments, the disease should be diagnosed as early as possible, but this is difficult with current clinical criteria. Potentially, the EEG can serve as an objective, first line of decision support tool to improve diagnosis. It is non-invasive, widely available, low-cost and could be carried out rapidly in the high-risk age group that will develop AD. Changes in the EEG due to the dementing process could be quantified as an index or marker. In this paper, we investigate two information theoretic methods (Tsallis entropy and universal compression algorithm) as a way to generate potentially robust markers from the EEG. The hypothesis is that the information theoretic makers for AD are significantly different to those of normal subjects. An attraction of the information theoretic approach is that, unlike most existing methods, there may be a natural link between the underlying ideas of information theoretic methods, the physiology of AD and its impact on brain functions. Data compression has not been investigated as a means of generating EEG markers before and is attractive because it does not require a priori knowledge of the source model. In this paper, we focus on the LZW algorithm because of its sound theoretical foundation. We used the LZW algorithm and Tsallis model to compute the markers (compression ratios and normalized entropies, respectively) from two EEG datasets.