One of the key properties of the JPEG2000 standard is that it is possible to parse a JPEG2000 bit-stream to extract a lower resolution and/or quality image without having to perform dequantization and requantization. This property is especially useful given the variety of devices with vastly differing bandwidth and display capabilities that can now access the Internet. It is anticipated that a high-resolution JPEG2000-compressed image stored at an image server will be accessed by a variety of clients with differing needs for resolution and image quality. To satisfy the needs of these heterogeneous clients, it is essential that the server have the ability to transcode a JPEG2000 image in an efficient manner with very little loss in image quality. In this paper, we present a number of methods for transcoding a JPEG2000 image and evaluate each with respect to computational complexity and the quality of the transcoded image.