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The field of digital image processing is growing exponentially, and as more researchers enter the arena, application areas continue to open with surprising rapidity. This special issue presents both a survey of the field as well as specific examples of projects currently in progress. Two main subjects are treated: image coding and image restoration-enhancement. The former area has particular application to the important task of sending images over digital communication networks, examples of which might include nationwide computer and timesharing networks for conferences, image sharing, and medical consultation. Other areas of image coding applications might include multispectral satellite imaging, spacecraft probes, remote piloted vehicles, facsimile transmission of images ranging from fingerprints to text, and even image transmission over existing telephone networks.