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We construct a new algorithm for motion compensation of wavelet coefficients. The new approach outperforms standard block matching techniques both in terms of higher PSNR, and better perceptual quality. The algorithm works directly in the wavelet coefficients domain and has been successfully used for wavelet based very low bit rate video coding.doi:10.1109/icip.1997.632202 dblp:conf/icip/MeyerAC97 fatcat:ex2utipg7farjeufoblafgcpcm