The compression of CAD models is a key technology for realizing Internet-based collaborative product development because big model sizes often prohibit us to achieve a rapid product information transmission. Although there exist some algorithms for compressing discrete CAD models, original precise CAD models are focused on in this paper. Here, the characteristics of hierarchical structures in CAD models and the distribution of their redundant data are exploited for developing a novel data encoding method. In the method, different encoding rules are applied to different types of data. Geometric data is a major concern for reducing model sizes. For geometric data, the control points of B-spline curves and surfaces are compressed with the second-order predictions in a local coordinate system. Based on analysis to the distortion induced by quantization, an efficient method for computation of the distortion is provided. The results indicate that the data size of CAD models can be decreased efficiently after compressed with the proposed method.