Dithered quantization has useful properties such as producing quantization noise independent of the source and continuous reconstruction at the decoder side. Dithered quantizers have traditionally been considered within their natural setting of uniform quantization framework. A uniformly distributed (with step size matched to the quantization interval) dither signal is added before quantization and the same dither signal is subtracted from the quantized value at the decoder side (only subtractive dithering is considered in this paper). The quantized values are entropy coded conditioned on the dither signal.