We present a new method for an efficient coding of image data. Based a
n the dyadic wavelet transform, the algorithm utilizes tile remaining
correlation between subbands. A successive approximation of wavelet co
efficients yields a hierarchical symbol stream, which is highly compre
ssed with a prediction of significant descendants (PSD). The coding al
gorithm distinguishes itself by a high adaptivity to the image content
. Tile resulting bitstream contains all image information in order of
its significance. Therefore it is possible to truncate the bitstream a
l any point; without to endanger the decoding process. The advantages
of such an embedded bitstream are spatial and rare-distortion scalabil
ity.