Color reproduction systems using multispectral imaging techniques make it possible to accurately reproduce the color of the original object under various viewing illuminants. In this paper, a multispectral image compression method for high fidelity color reproduction is proposed in consideration of color degradation. In the proposed method, a spectral transform and a nonlinear quantization designed to reduce colorimetric error are combined with the discrete wavelet transform in JPEG2000. Through the experiments using some 16-band multispectral images, it is confirmed that the
proposed method reduces the average and the maximum color differences in L*a*b* color space in comparison with the conventional methods.