We propose an audio codec that addresses the low-delay requirements of some applications such as network music performance. The codec is based on the modified discrete cosine transform (MDCT) with very short frames and uses gain-shape quantization to preserve the spectral envelope. The short frame sizes required for low delay typically hinder the performance of transform codecs. However, at 96 kbit/s and with only 4 ms algorithmic delay, the proposed codec out-performs the ULD codec operating at the same rate. The total complexity of the codec is small, at only 17 WMOPS for real-time operation at 48 kHz.