Why are the DNG files from my RW2 raw files are so large (37MB)?

I have a fairly new Panasonic Lumix LX5.  I've recently converted a few files to DNG.
They're turning out to be @ 37MB, over three times larger than the original file.
I'm not embedding the original raw files in the DNG.
NEF files I convert from my Nikon D2x are around 9.5MB.
I'm running Mac OS 10.5.8,  DNG v 6.6 and also use PS CS5.5 and Lightroom 3.0.
Any ideas??

Thanks R_Kelly!
I was using the DNG converter app.
I just tried converting a RW2 raw file by saving it in from the ACR window in CS5 with your recommended settings:
Compatibility 5.4 and later
Jpeg preview:medium size
without orginal raw file embedded.
This yielded a 9.7MB DNG file.  Yeah!!
So I went back and tried a couple using the DNG converter app.
With compatbility set to 4.6 & later, the converted files are 37MB.
But with compatiblity set to 5.4 & later files are 9.7 MB.
This is the same when using either the app or  from ACR.
So the difference here is the compatiblity setting.
Does anyone know why this happens??

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