A visually lossless data compression technique is currently being developed for space science applications under the requirement of high-speed push-broom scanning. The technique is also applicable to frame based imaging and is error-resilient in that error propagation is contained within a few scan lines. The algorithm is based on a block transform of a hybrid of modulated lapped transform (MLT) and discrete cosine transform (DCT), or a 2-dimensional lapped transform, followed by bit-plane encoding; this combination results in an embedded bit string with exactly the desirable compression rate as desired by the user. The approach requires no unique table to maximize its performance. The compression scheme performs well on a suite of test images typical of images from spacecraft instruments. Flight qualified hardware implementations are in development; a functional chip set is expected by the end of 2001. The chip set is being designed to compress data in excess of 20 Msamples/sec and support quantizations from 2 to 16 bits.