Without a question. the most significant new medium for transmitting information is the Internet. Unfortunately. the multimedia elements that enrich our titles are extremely bulky. While the Internet hype is available in unlimited supply. Internet bandwidth and functionality of web browser are not making the net quite hospitable to multimedia data formats. In this thesis. for smoother and better communications over the net. a study is done on still image compression techniques. based on wavelet transform which is selected on MPEG-4 as a still image compression standard and a strong candidate for the JPEG-2000 standard. For Internet service. the study of plug-in programming and ActiveX control is implemented to enrich the functionality of web browser. As a result. the proposed still image service gives better image quality than current standard JPEG and does not yield to the common blocking artifacts.