tar exclude

How do I compress and backup files using tar command to another directory on same computer or another Linux computer under Ubuntu Linux?

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How can I keep out certain files when creating a tarball? For example:

/home/me/file1
/home/me/dir1
/home/me/dir2
/home/me/abc
/home/me/xyz

How do I execute zyz and abc file while using a tar command?

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