CRAMMIT takes images originating in military field units, and applies innovative pre-processing algorithms. These algorithms use entropy-reduction and other techniques to pre-condition the image data so existing compression techniques, such as Winzip, Bzip, JPEG2000, or others, significantly improve their compression performance (higher compression ratios). Then, the existing techniques compress the images, which are transmitted in compressed form over the network being used. Finally, a CRAMMIT restoration process reconstructs the images, reverses the pre-processing, and delivers the restored imagery to users at the destination. Throughout this processing, distributed CRAMMIT elements ensure adherence to DICOM or other standards, so that (1) compression and transmission speed are optimized and (2) the final image product is of diagnostic quality and fully compliant with DICOM or other standards to ensure compatibility with medical imaging and diagnostic equipment. The fully-automated processing requires no special user interactions at either source or destination. In Phase I we will design and implement a CRAMMIT Feasibility Test Setup, test it, assess results, quantitatively evaluate feasibility, and prepare a commercialization plan and preliminary design for Phase II within the Phase I final report. We will demonstrate feasibility and compatibility with actual medical imagery (XRAY, CT, US) using this test setup.