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This paper presents an architecture design for JPEG2000 with a fast algorithm in EBCOT. The EBCOT algorithm takes advantages of resolution and SNR scalability together with a random access property, but its complexity also becomes the bottleneck of JPEG2000. In this paper, the authors proposed a fast algorithm that uses two speed-up methods for EBCOT context modeling. The gate counts of JPEG2000 design is about 105.9 K gate with TSMC 0.25 μm technology. It can encode 4.2 million pixels per second at 40 MHz.