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Feature extraction algorithm is a very important component of any retrieval scheme. We propose M-band Wavelet Transform based feature extraction algorithm in this paper. The MtimesM sub-bands are used as primitive features, over which energies computed in a neighborhood are taken as the features for each pixel of the image. These features are clustered using FCM to obtain image signature for similarity matching using the Earth Mover's Distance. The results obtained were compared with MPEG-7 content descriptor based system and found to be superior.