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The lifting scheme is well-known to be an efficient tool for constructing second generation wavelets, and is often used to design a class of biorthogonal wavelet filter banks. For its efficiency, the lifting implementation has been also adopted in the international standard JPEG2000. It is known that the orthogonality of wavelets is an important property for many applications. This paper presents how to implement two band IIR orthogonal wavelet filter banks according to the lifting scheme. It is shown that a class of IIR orthogonal wavelet filter banks can be realized by using allpass filters in the lifting steps. Thus, the proposed filter banks have approximate linear phase responses. Finally, the proposed IIR orthogonal wavelet filter banks are applied to image lossless compression, and the coding performance is investigated.