A method for data compression

A method is disclosed of encoding data including transforming the data into a series of components having different frequency characteristics, said components each including a series of coefficients; encoding said coefficients in a compact form, said coefficients including a binary string and said encoding including providing a first efficient encoding technique to encode the number of leading zeros in said binary string, and rounding said coefficients such that a rounded coefficient does not alter significantly the efficient coding of the leading zeros. Preferably, the rounding can includes discarding a first number of insignificant coefficients and adding one to the more significant coefficients only where the more significant coefficients are not zero. The invention has particular application when utilised in encoding wavelet transformed data and when utilised on image data.