In this paper we investigate encoding the bit-stream resulting from coarse Sigma-Delta quantization of finite frame expansions (i.e., overdetermined representations) of vectors. We show that for a wide range of finite-frames, including random frames and piecewise smooth frames, there exists a simple encoding algorithm ---acting only on the Sigma-Delta bit stream--- and an associated decoding algorithm that together yield an approximation error which decays exponentially in the number of bits used. The encoding strategy consists of applying a discrete random operator to the Sigma-Delta bit stream and assigning a binary codeword to the result. The reconstruction procedure is essentially linear and equivalent to solving a least squares minimization problem.