In this paper, a modified algorithm was introduced to improve Rice coding algorithm and researches of image compression with the CDF (2,2) wavelet lifting scheme was made. Our experiments show that the property of the lossless image compression is much better than Huffman, Zip, lossless JPEG, RAR, and a little better than (or equal to) the famous SPIHT. The lossless compression rate is improved about 60.4%, 45%, 26.2%, 16.7%, 0.4% on average. The speed of the encoder is faster about 11.8 times than the SPIHT's and its efficiency in time can be improved by 162%. The speed of the decoder is faster about 12.3 times than that of the SPIHT's and its efficiency in time can be rasied about 148%. This algorithm, instead of largest levels wavelet transform, has high coding efficiency when the wavelet transform levels is larger than 3. For the source model of distributions similar to the Laplacian, it can improve the efficiency of coding and realize the progressive transmit coding and decoding.