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Presents a new method for the compression of MR and ultrasound images using a wavelet transform. Nine different wavelet filters have been compared, and the image is decomposed by using the wavelet filter, which gives the highest energy compaction. The wavelet coefficients at the third decomposition level are used for the compression of the biomedical images. The proposed method has provided similar compression ratios, while maintaining a good image quality, with the JPEG compression method.