A new algorithm of classified vector quantization based on quadtree segment
ation is proposed. It can obtain lower bit rate and overcome edge degradati
on. Simulation results show that the better subjective image quality can al
so be obtained when bitrate is lower than 0.25 bpp. Comparing with JPEG, th
e improvement of the peak signal-to-noice ratio (PSNR) is up to 2 dB at the
same bit rate.