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Saving to .xls in Excel 2007 increases the file size by 5x

Has anyone noticed that if you open a Excel 2003 .xls file using Excel 2007 and then save it back to .xls (2003 compatibility mode), the file size increases by 5x? 1 MB .xls file becomes 5+MB .xls file......

However saving the file to .xlsx reduces the file size?

What gives?

Note: This doesn't happen with all xls file. It only happens when were are using certain functions / features. However I haven't figured out what causes it........
 
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