In this paper, a novel concept of a finned piston system is presented and analyzed in which the compression heat is continuously extracted from the compression chamber. The resulting compression characteristic moves in the direction of an isothermal process, reducing the temperature of the compressed fluid in the compression chamber and reducing the necessary mechanical work required to carry out the process. The finned piston concept consists in an integrated heat exchanger inside of the chamber that is constituted of imbricated flat fins placed on the stator part and on the mobile piston. The internal heat exchange on the surface is strongly increased in comparison with a classical piston/cylinder. The energetic performance of the new system is evaluated with the help of simulation. The pressures, forces, and temperature of the compressed gas are simulated as well as the mechanical work needed. The different curves are compared with the system’s adiabatic and isothermal characteristics.