The next generation of satellite-borne sensors will combine high spati
al resolution with fine spectral resolution. A typical data set for a
single frame of imagery may contain a few hundred images occupying man
y gigabytes of space. Clearly, traditional image processing algorithms
cannot be directly applied to such a vast quantity of data. We invest
igate enhancement and compression algorithms that use the spectral cor
relation present in high-resolution imagery to reduce the computationa
l complexity of processing the imagery. The algorithm employs a princi
pal component transformation to reduce the size of the data set. Enhan
cing the reduced set of images provides equivalent results to processi
ng each of the original images with far fewer computations. The compre
ssion algorithm utilizes a hybrid discrete cosine transform-differenti
al pulse code modulation (DCT-DPCM) transform. The DCT is computed for
each image, a bit map is generated for the DCT coefficients, and DPCM
is used to encode the coefficients across the bands. Compression at l
ess than 0.5 bits/pixel with negligible visual degradation is obtained
.