Due to the perceived inadequacy of current standards for lossless image compression, the JPEG committee of the International Standards Organization (ISO) has been developing a new standard. A baseline algorithm, called JPEG-LS, has already been completed and is awaiting approval by national bodies. The JPEG-LS baseline algorithm despite being simple is surprisingly efficient, and provides compression performance that is within a few percent of the best and more sophisticated techniques reported in the literature. Extensive experimentations performed by the authors seem to indicate that an overall improvement by more than 10 percent in compression performance will be difficult to obtain even at the cost of great complexity; at least not with traditional approaches to lossless image compression. However, if we allow inter-band decorrelation and modeling in the baseline algorithm, nearly 30 percent improvement in compression gains for specific images in the test set become possible with a modest computational cost. In this paper we propose and investigate a few techniques for exploiting inter-band correlations in multi-band images. These techniques have been designed within the framework of the baseline algorithm, and require minimal changes to the basic architecture of the baseline, retaining its essential simplicity.© (1997) COPYRIGHT SPIE--The International Society for Optical Engineering. Downloading of the abstract is permitted for personal use only.