This paper presents a tutorial overview of neural networks as signal p
rocessing tools for image compression. They are well suited to the pro
blem of image compression due to their massively parallel and distribu
ted architecture. Their characteristics are analogous to some of the f
eatures of our own visual system, which allow us to process visual inf
ormation with much ease. For example, multilayer perceptions can be us
ed as nonlinear predictors in differential pulse-code modulation (DPCM
). Such predictors have been shown to increase the predictive gain rel
ative to a linear predictor. Another active area of research is in the
application of Hebbian learning to the extraction of principal compon
ents, which are the basis vectors for the optimal linear Karhunen-Loev
e transform (KLT). These learning algorithms are iterative, have some
computational advantages over standard eigendecomposition techniques,
and can be made to adapt to changes in the input signal. Yet another m
odel, the self-organizing feature map (SOFM), has been used with a gre
at deal of success in the design of codebooks for vector quantization
(VQ). The resulting codebooks are less sensitive to initial conditions
than the standard LBG algorithm, and the topological ordering of the
entries can be exploited to further increasing coding efficiency and r
educe computational complexity.