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We present a throughput-efficient FPGA implementation of the Set Partitioning in Hierarchical Trees (SPIHT) algorithm for compression of images. The SPIHT uses inherent redundancy among wavelet coefficients and suited for both grey and color images. The SPIHT algorithm uses dynamic data structure which hinders hardware realization. In our FPGA implementation we have modified basic SPIHT in two ways, one by using static (fixed) mappings which represent significant information and the other by interchanging the sorting and refinement passes. A hardware realization is done in a Xilinx Vertex FPGA device. Significant throughput and compression ratio are obtained.