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In this paper we propose a DWT-based perceptually lossless image compression algorithm and architecture. Many image-capturing devices acquire images in subsampled R-G-B format and have real-time constraints which prohibit conversion to other formats, generally preferred for image compression, such as Y-Cb-Cr. Therefore, we propose a compression algorithm which works performed directly on the subsampled R-G-B data. The scheme exploits the correlation between the color planes and the perceptual sensitivity of the human visual system in order to improve the compression ratio. Moreover it can be easily mapped into an integrated fast architecture yielding very high throughput.