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Synthetic aperture radar (SAR) image compression is important in image transmission and archiving. In this paper, SAR image compression using embedded zerotree wavelets algorithm, based on discrete wavelet transform (DWT), is researched. Aiming at special characteristics of SAR image such as speckle noise, the author added a denoise step in the flow of compression, trying to do some meaningful attempt in SAR image compression. Experiments carried out show that the improvement can reduce the speckle noise and improve the computation precision and time.