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Compound images consist of text, graphics and natural images, which present strong anisotropic features. It makes existing image coding standards inefficient on compressing them. To solve the problem, this paper proposes a novel coding scheme based on the H.264 intra-frame coding. Two new intra modes are proposed to better exploit spatial correlations in compound images. The first is Residual Scalar Quantization (RSQ) mode, where intra-predicted residues are directly quantized and entropy coded. The second is Base Colors and Index Map (BCIM) mode that can be viewed as an adaptive vector quantization. In this mode, an image block is represented by several representative colors, called as base colors, and an index map to compress.
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