Abstract
A combination of subband coding and absolute moment block truncation coding (AMBTC) is presented to effectively eliminate the blocking effect (or grid noise) that the AMBTC severely suffers. To dynamically allocate bits for each subband and efficiently achieve quality images for a given compression ratio, there are two fundamental questions; (1) how to choose subbands for applying AMBTC, and (2) how to choose the appropriate window sizes for these subbands. The concept of intra-subband and inter-subband bit allocation has been proposed to address the former issue, and a variable window size approach is suggested for the latter one. Each solution shows promising results.

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