This paper describes work carried out at the University of Rennes, France in cooperation with the CCETT in Rennes, to develop an algorithm sophisticated enough to reduce bandwith by more than 50% without loss of image quality and still simple enough to be implemented in real time by a specialized processor using commercially available components. We will give an informal description of the algorithm, developed by messrs. Benveniste, Kretz and Richard, and a more detailed view of the processor.