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Presents a novel compression method for ultrasound images in a tele-ultrasound system. The encoder chooses the ultrasound scan line signals as the objects to be compressed and transmitted other than the standard video images in conventional methods. Furthermore, a nonuniform discrete wavelet transform is proposed, considering the different resolutions in the axial and lateral directions of ultrasound images. Experimental results show that the new method provides better compression performance than conventional methods in terms of a peak signal-to-noise ratio and processing time.