In this paper we present an encoder, decoder and a stabilizing controller for reliable data reconstruction and robust stability of uncertain dynamic systems controlled over Additive White Gaussian Noise (AWGN) channels. The uncertainty in the dynamic system is described by a relative entropy constraint. Such an uncertainty description is a natural stochastic generalization of the sum quadratic uncertainty description. This paper complements the results of Farhadi and Charalambous (2008) by showing that the necessary condition presented there can be tight. This is shown by designing an encoder, decoder and a stabilizing controller. (C) 2010 Elsevier Ltd. All rights reserved.