Arithmetic Encoding in MATLAB

This small piece of code achieves arithmetic coding. Ketul Shah from Nirma University is acknowledged as the copyright holder in the license file.
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Copyright (c) 2014, Ketul Shah
All rights reserved.

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modification, are permitted provided that the following conditions are
met:

    * Redistributions of source code must retain the above copyright
      notice, this list of conditions and the following disclaimer.
    * Redistributions in binary form must reproduce the above copyright
      notice, this list of conditions and the following disclaimer in
      the documentation and/or other materials provided with the distribution
    * Neither the name of the  nor the names
      of its contributors may be used to endorse or promote products derived
      from this software without specific prior written permission.

THIS SOFTWARE IS PROVIDED BY THE COPYRIGHT HOLDERS AND CONTRIBUTORS "AS IS" AND ANY EXPRESS OR IMPLIED WARRANTIES, INCLUDING, BUT NOT LIMITED TO, THE IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE ARE DISCLAIMED. IN NO EVENT SHALL THE COPYRIGHT OWNER OR CONTRIBUTORS BE LIABLE FOR ANY DIRECT, INDIRECT, INCIDENTAL, SPECIAL, EXEMPLARY, OR CONSEQUENTIAL DAMAGES (INCLUDING, BUT NOT LIMITED TO, PROCUREMENT OF SUBSTITUTE GOODS OR SERVICES; LOSS OF USE, DATA, OR PROFITS; OR BUSINESS INTERRUPTION) HOWEVER CAUSED AND ON ANY THEORY OF LIABILITY, WHETHER IN CONTRACT, STRICT LIABILITY, OR TORT (INCLUDING NEGLIGENCE OR OTHERWISE) ARISING IN ANY WAY OUT OF THE USE OF THIS SOFTWARE, EVEN IF ADVISED OF THE POSSIBILITY OF SUCH DAMAGE.

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clc;clear all;
%Arithmatic Coding
%by Ketul Shah
%Nirma University
prompt='  Enter the word    ';
str=input(prompt,'s');
arith=str;
len=size(str);
le=len(2);
count=[];
disp('Arithmatic Encoding Started');
for i=1:le-1
    count(i)=1;
    for j=i+1:le
        if str(i)==str(j)
            str(j)=0;
            count(i)=count(i)+1;
        end
    end
end
if(str(le)~=0)
    count(le)=1;
end
j=1;
%------------Transmitter part--------------------
for i=1:le
    if(str(i)~=0)
        new(j)=str(i);
        p(j)=count(i)/le;
        if(j>1)
            ar(j)=ar(j-1)+p(j);
        else
            ar(j)=p(j);
        end
        disp(['Probability for ',str(i),' is   ',num2str(p(j))]);
        j=j+1;
    end
end
larith=size(new);
l=[];u=[];
l(1)=0;
u(1)=ar(1);
for i=2:le
    for j=1:larith(2)
        if(arith(i)==new(j))
       l(i)=l(i-1)+(u(i-1)-l(i-1))*(ar(j)-p(j));
       u(i)=l(i-1)+(u(i-1)-l(i-1))*ar(j);
        end
    end
end
tag=(l(i)+u(i))/2;
disp(['The tag is     ',num2str(tag)]);

%----------------Reciever part--------------
disp('Arithmetic Decoding Started');
rec='a';
tagr=tag;
for i=1:le
    for j=1:larith(2)
        if(tagr<ar(j) && tagr>(ar(j)-p(j)))
            rec(i)=new(j);
            nm=j;
        end
    end
    if(nm>1)
    tagr=(tagr-ar(nm-1))/p(nm);
    else
    tagr=tagr/p(nm);
    end
end

disp(['Recieved word is       ',rec]);
if(rec==arith)
    disp('Succesfully Recieved');
else
    disp('Sorry not recieved successfully');
end

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Sample input and output:
  Enter the word    hello there
Arithmatic Encoding Started
Probability for h is   0.18182
Probability for e is   0.27273
Probability for l is   0.18182
Probability for o is   0.090909
Probability for   is   0.090909
Probability for t is   0.090909
Probability for r is   0.090909
The tag is     0.060858
Arithmetic Decoding Started
Recieved word is       hello there
Succesfully Recieved

Awesome piece of code.