In this research we introduce and idea for image compression, based on JPEG technique and
Sequential Search Algorithm, at first using Discrete Wavelet Transform (DWT) to obtain LL sub-band, then
apply JPEG technique on the LL sub-band. JPEG technique consist of; JPEG Transformation, and JPEG
Coding. The LL sub-band transformed by JPEG transformation for obtaining more compression ratio. Before
apply JPEG coding, our algorithm used feedbacks system for inverse JPEG transformation to get decoded LL
sub-band, and then the difference between decoded LL and original LL are stored in a new matrix called D-
Matrix, finally the D-Matrix compressed by Sequential Search Algorithm. The Decompression algorithm
consists of; Inverse JPEG transformation to get decoded LL, Sequential Search Algorithm to find D-Matrix,
Add D-Matrix with the decoded LL and apply inverse DWT to get decompressed image. Our algorithm
tested on two different gray level images and compared with JPEG and JPEG2000.