Abstract: Region of Interest (ROI)coding is one of the innovativ e functionalities supported by JPEG2000, ROI coding is incorporated functionality into SPIHT coding with integer wavelet transform. By placing a higher emphasis o n the transform coefficients pertaining to ROI, ROI is coded with higher fidelit y than the rest of the image (BG) in earlier stages of progressive reconstructio n, thus the "important" part of the image is reconstructed more quickly than BG. This method significantly saves transmission time and storage space by terminat ing encoding or transmission in situations where ROI needs to be coded losslessl y and BG visually losslessly (lossy).