This document discusses image compression techniques using wavelet transforms. It begins with an introduction to image compression and discusses lossless and lossy compression methods. It then focuses on wavelet transforms, which decompose images into different frequency components, allowing for better compression. The document describes how wavelet-based compression avoids blocking artifacts seen in other methods like DCT. It details an image compression program called MinImage that implements various wavelet types and the embedded zerotree wavelet coding algorithm to achieve good compression ratios while maintaining image quality. In conclusion, wavelet transforms combined with entropy coding provide effective lossy compression of digital images.