A new image compression algorithm is proposed based on local visual activity classification and the investigation of the histograms of the small non-overlapping blocks of the differential and angle image. Histograms of the differential blocks are classified according to their visual activities as Unimodal, Bimodal and Multimodal blocks. According to the histogram shape of the differential block and the mean angle of the same block an optimized quantization table with special coding is applied by taking the advantages of the local visual activities within the block. A considerable compression ratio and visual output improvement compared with the DCT compression algorithm are gained.
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