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We have developed an advanced vector quantization (VQ) encoding hardware for still image encoding systems. By utilizing needless calculation elimination method, computational cost of VQ encoding is reduced to 40% or less, while maintaining the accuracy of full-search VQ. We have also developed a still image compression algorithm based on adaptive resolution VQ (AR-VQ), which realizes compression ratio over 1/200 while maintaining image quality. We have successfully implemented these two technologies into a still image encoding processor. The processor can compress still image of 1600/spl times/2400 pixels within one second, which is 60 times faster than software implementation on current PCs.