Deep convolution neural network has achieved great success in many artificial intelligence applications. However, its enormous model size and massive computation cost have become the main obstacle for deployment of such powerful algorithm in the low power and resource limited embedded systems. As the countermeasure to this problem, in this work, we propose statistical weight scaling and residual expansion methods to reduce the bit-width of the whole network weight parameters to ternary values (i.e. -1, 0, +1), with the objectives to greatly reduce model size, computation cost and accuracy degradation caused by the model compression. With about 16× model compression rate, our ternarized ResNet-32/44/56 could outperforms full-precision counterparts by 0.12%, 0.24% and 0.18% on CIFAR-10 dataset. We also test our ternarization method with AlexNet and ResNet-18 on ImageNet dataset, which both achieve the best top-1 accuracy compared to recent similar works, with the same 16× compression rate. If further incorporating our residual expansion method, compared to the full-precision counterpart, our ternarized ResNet-18 even improves the top-5 accuracy by 0.61% and merely degrades the top-1 accuracy only by 0.42% for ImageNet dataset, with 8× model compression rate. It outperforms the recent ABC-Net by 1.03% in top-1 accuracy and 1.78% in top-5 accuracy, with around 1.25× higher compression rate and more than 6× computation reduction due to the weight sparsity.