The Set Partitioning in Hierarchical Trees (SPIHT) is modified and a new algorithm is developed, called Modified SPIHT (MSPIHT) using one list to store the co-ordinates of wavelet coefficients. When a coefficient of DWT is found as significant or insignificant, its last error bits will be omitted and rest of the bits will be outputted. MSPIHT is the low memory solution of SPIHT algorithm by eliminating the temporary list LSP and LIP. Absolute zerotree is a good solution of the rapid extension of LIS. The MATLAB simulation result shows that for coding a 512x512, gray-level image, MSPIHT reduce...