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This paper presents a new compression technique and image watermarking algorithm based on Contourlet Transform (CT). For image compression, an energy based quantization is used. Scalar quantization is explored for image watermarking. Double filter bank structure is used in CT. The Laplacian Pyramid (LP) is used to capture the point discontinuities, and then followed by a Directional Filter Bank (DFB) to link point discontinuities. The coefficients of down sampled low pass version of LP decomposed image are re-ordered in a pre-determined manner and prediction algorithm is used to reduce entropy (bits/pixel). In addition, the coefficients of CT are quantized based on the energy in the particular band.
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