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In this paper, a new method to reduce spectral redundancy with SHIRCT was represented. It was advanced that the compression ratio of SPIHT code with different SHIRCT transformation parameters tends to be equival when the parameter η tends to 0. The way of reducing spatial redundancy by using wavelet transformation and the algorithm of image lossless compression applying SPIHT is researched too. The experiment results show that the algorithm can greatly improve the lossless compression efficiency on color image. The average compression ratio with the algorithm was increased about 19.43% than the ZIP lossless compression algorithm.