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The storage and transmission of medical images has made compression a must. This paper presents an effective algorithm to compress and reconstruct the medical images. The proposed algorithm first extracts edge information of medical images by using edge detector. The technique utilises the tier-1 part of efficient wavelet-based compression algorithm JPEG2000. The medical images are decomposed using Discrete Wavelet Transform (DWT). The wavelet coefficients are encoded using arithmetic coder. Better visual quality images are produced by this method at a lower bit rate compared with other standard compression algorithms. The image quality is evaluated by objective quality measures.
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