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The CAUSAL, RESTART and RESET mode switches, previously used to enable microscopic parallelism and improve throughput, are examined in terms of the memory requirements of the JPEG2000 block coder. An extended pass switching arithmetic encoder (EPSAE) is introduced that aids in the reduction of memory by providing the ability to partially process code-blocks. We show how the use of these switches and the EPSAE can reduce the overall amount of memory required by the block coder by a factor of 7. This reduction is achieved without the necessity of tight synchronization between the DWT and block coder.