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Transform coding has been the focus of the research for image compression. In previous research, the Amplitude and Group Partitioning (AGP) coding scheme is proved to be a low complexity algorithm with higher performance, clearly one of the state-of-art transform coding techniques. However, the previous AGP is used along with the Discrete Cosine Transform (DCT) and the discrete wavelet transform. In this paper, a different transform, the Lapped Orthogonal Transform (LOT), replaces the DCT in conjunction with the AGP. This is the first time LOT and AGP have been combined in a coding method. The definition and design of the LOT are discussed. An objective metric to measure the performance of transform, coding gain, is calculated for both the DCT and the LOT. The LOT has slightly higher coding gain than the DCT. The principles of the LOT based AGP image codec (LOT-AGP) are presented and a complete codec, encoder and decoder, is implemented in software. The performance of the LOT-AGP is compared with other block transform coding schemes: the baseline JPEG codec and the DCT based AGP image codec (DCT- AGP) by both objective evaluation and subjective evaluation. The Peak Signal to Noise Ratio (PSNR) is calculated for these three coding schemes. The two AGP codecs are much better than the JPEG codec on PSNR, from about 1.7 dB to 3 dB depending on bit rate. The two AGP schemes have PSNR differences only to a small degree. Visually, the LOT-AGP has the best-reconstructed images among these three at all bit rates. In addition, the coding results of two other state-of-art progressive image codecs are cited for further comparison. One is the Set Partitioning in Hierarchical Trees (SPIHT) algorithm with a dyadic wavelet transform, and the other is Tran and Nguyen's method with the generalized LOT transform. The AGP coding and the adaptive Huffman entropy coding of LOT-AGP are less complex and the memory usage is smaller than in these two progressive codecs. Comparing these three codecs, i.e. the LOT-AGP and the two progressive codecs in PSNR small only small differences in PSNR. SPIHT has about 1 dB higher PSNR than the LOT-AGP and Tran and Nguyen's method for the test image Lena. For the test image Barbara, the PSNR of the LOT- AGP is about 0.5 dB higher than that of the SPIHT and 0.5 dB lower than that of Tran and Nguyen's method. This low- complexity and high performance codec may provide a new direction for the implementation of image compression.
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