A technique for efficient coding of homogeneous textures is presented here. The technique is based on the use of Stochastic Vector Quantization and provides very high compression with graceful degradation. To encode the image, a linear prediction filter is computed. Then, the prediction error is encoded using a Stochastic Vector Quantization approach. To decode the image, the prediction error is decoded first and then filtered as a whole using the prediction filter, thus avoiding the block effect found in conventional VQ. The approach has been proposed as a still image coding technique in MPEG 4 SNHC. Comparisons with the Video VM of MPEG 4 are also presented

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