Efficient compression techniques are required for the coding of hypers
pectral data. Lossless compression is required in the transmission and
storage of data within the distribution system. Lossy techniques have
a role in the initial analysis of hyperspectral data where large quan
tities of data are evaluated to select smaller al-eas for more detaile
d evaluation. Central to lossy compression is the development of a sui
table distortion measure, and this work discusses the applicability of
extant measures in video coding to the compression of hyperspectral i
magery. Criteria for a remote sensing distortion measure are developed
and suitable distortion. measures are discussed One measure [the perc
entage maximum absolute distortion (PMAD) measure] is considered to be
a suitable candidate for application to remotely sensed images. The e
ffect of lossy compression is then investigated on the maximum likelih
ood classification of hyperspectral images, both directly on the origi
nal reconstructed data and on. features extracted by the decision boun
dary feature extraction (DBFE) technique. The effect of the PMAD measu
re is determined on the classification of an image reconstructed with
varying degrees of distortion. Despite some anomalies caused by challe
nging discrimination tasks, the classification accuracy of both the to
tal image and its constituent classes remains predictable as the level
of distortion increases. Although total classification accuracy is re
duced from 96.8% for the original image to 82.8% for the image compres
sed with 4% PMAD, the loss in accuracy is not significant (less that 8
%) for most classes other than those that present a challenging classi
fication problem. Yet the compressed image is 1/17 the size of the ori
ginal. (C) Elsevier Science Inc., 1997.