Speeding up a WordPress site

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I have a WordPress site up and running but it is rather slow because of the large images that have been uploaded. What I’d like to know is whether I should reduce the images or compress them, and is it worth getting one of the many compression plugins available
as mentioned here:-

http://wordpress.alternativelist.com/plugin/wp-http-compression-alternative-and-similar-wordpress-plugins-4695.html