Mahmoud R. El-Sakka and Mohamed S. Kamel, "Adaptive Image 
                  Compression Based on Segmentation and Block Classification", 
                  International Journal of Imaging Systems and Technology, 
                  Special Issue on Image and Video Compression Vol. 10, pp. 
                  33-46, January 1999.
               
               
               
               Abstract
               
               
               
                  This paper presents a new digital image compression scheme 
                  which exploits one of the human visual system 
                  properties---namely that of, recognizing images by their 
                  regions---to achieve high compression ratios. It also assigns
                  a variable bit count to each image region that is proportional
                  to the amount of information it conveys to the viewer.
                  The new scheme copes with image non-stationarity by adaptively
                  segmenting the image into variable-block sized regions, and 
                  classifying them into statistically and perceptually 
                  different classes. These classes include, a smooth class, a 
                  textural class, and an edge class. Blocks in each class are 
                  separately encoded. For smooth blocks, a new adaptive 
                  prediction technique is used to encode block averages.
                  Meanwhile, an optimized DCT-based technique is used to encode
                  both edge and textural blocks.
                  
                  
                  Based on extensive testing and comparisons with other existing
                  compression techniques, the performance of the new scheme 
                  surpasses the performance of the JPEG standard and goes beyond
                  its compression limits. In most test cases, the new 
                  compression scheme results in a maximum compression ratio 
                  that is at least twice of JPEG, while exhibiting lower 
                  objective and subjective image degradations. Moreover, the 
                  performance of the new block-based compression is comparable
                  to the performance of the state-of-the-art wavelet-based 
                  compression technique and provides a good alternative when 
                  adaptability to image content is of interest.