Long-term electroencephalogram (EEG) monitoring is an important tool used for the diagnosis of epilepsy. Truly Wearable EEG can be considered as the future of ambulatory EEG units, which are the current standard for long-term EEG monitoring. Replacing these short lifetime, bulky units with long-lasting miniature and wearable devices which can be easily worn by patients will result in more EEG data being acquired for longer monitoring periods. This paper presents an analog-based data reduction integrated circuit that would reduce the amount of power required to transmit EEG data by identifying the sections of data that are interesting for diagnostic purposes while discarding the background activity. Using the data reduction system as part of a miniature wireless, EEG monitoring unit would yield significant reductions in power consumption since the transmitter will only be switched ON based on the data reduction system output. A system prototype chip has been fabricated in a 0.35 μm CMOS process. The system consumes 760 nA from a 1.25 V supply and is able to achieve a sensitivity of 87%, while transmitting 45% of the overall EEG data.