The full-frame image compression technique was developed at the University of California, Los Angeles, specifically for radiological applications. Because this method is very innovative and unique, no commercially available hardware is able to process the algorithm with any efficiency. We have developed a dedicated hardware module for this purpose based on the latest technology. Specifications were determined from clinical requirements. Various important technical challenges were overcome by customized system designs, including a key concept of using dual-bus architecture for direct memory access transfer. We report on the status of a functional prototype and some image quality evaluations.