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We present a new construction of lifted biorthogonal wavelets on surfaces of arbitrary two-manifold topology for compression and multiresolution representation. Our method combines three approaches: subdivision surfaces of arbitrary topology, B-spline wavelets, and the lifting scheme for biorthogonal wavelet construction. The simple building blocks of our wavelet transform are local lifting operations performed on polygonal meshes with subdivision hierarchy. Starting with a coarse, irregular polyhedral base mesh, our transform creates a subdivision hierarchy of meshes converging to a smooth limit surface. At every subdivision level, geometric detail is expanded from wavelet coefficients and added to the surface. We present wavelet constructions for bilinear, bicubic, and biquintic B-spline subdivision. While the bilinear and bicubic constructions perform well in numerical experiments, the biquintic construction turns out to be unstable. For lossless compression, our transform is computed in integer arithmetic, mapping integer coordinates of control points to integer wavelet coefficients. Our approach provides a highly efficient and progressive representation for complex geometries of arbitrary topology.