This paper addresses the problem of Approximate Nearest Neighbor (ANN) search\nin pattern recognition where feature vectors in a database are encoded as\ncompact codes in order to speed-up the similarity search in large-scale\ndatabases. Considering the ANN problem from an information-theoretic\nperspective, we interpret it as an encoding, which maps the original feature\nvectors to a less entropic sparse representation while requiring them to be as\ninformative as possible. We then define the coding gain for ANN search using\ninformation-theoretic measures. We next show that the classical approach to\nthis problem, which consists of binarization of the projected vectors is\nsub-optimal. Instead, a properly designed ternary encoding achieves higher\ncoding gains and lower complexity.\n