During Phase I we have identified and compared the major methods for compression of audio, images and video. Concentrating on images and video we have developed a baseline standard for high rate image compression (See Report Phase I) as well as fast algorithmic methodologies that permit real-time compression in software at a rate of (16) sixteen 512 x 512 images per second on a HP workstation, a demonstration software platform was developed. We expect in Phase II to adapt these algorithms to a variety of broadcasting modes, and to have a prototype spread spectrum video transmission system in operation. We have currently formed a team of top experts in the USA in these areas, which in collaboration with DDC, ETC and Lockheed Martin will embed these methods in various DOD and commercial products. (See enclosed letters). The methods to be developed are expected to assist tasks. In particular the specific broadcast problem considered will apply directly to surveillance and reconnaissance tasks. The wavelet compression software toolkit developed under Phase I to be enhanced in Phase II will provide a friendly software environment for the customization of compression algorithms to specific technical needs. (as required for example for SAR and IR imaging, medical imaging, wireless communications, fingerprints, etc.) Home, business, reconaissance, wireless surveillance cameras which operated in the unlicensed 900 Mhz and 1.2 Ghz can be deployed in far greater numbers than standard analog broadcast devices. High resolution specialized scanners for technical image compression and transmission, foe medical imaging, fingerprints, police, maps, etc.