The introduction of the fast Fourier transform algorithm has led to the development of the Fourier transform image coding technique whereby the two-dimensional Fourier transform of an image is transmitted over a channel rather than the image itself. This devlopement has further led to a related image coding technique in which an image is transformed by a Hadamard matrix operator. The Hadamard matrix is a square array of plus and minus ones whose rows and columns are orthogonal to one another. A high-speed computational algorithm, similar to the fast Fourier transform algorithm, which performs the Hadamard transformation has been developed. Since only real number additions and subtractions are required with the Hadamard transform, an order of magnitude speed advantage is possible compared to the complex number Fourier transform. Transmitting the Hadamard transform of an image rather than the spatial representation of the image provides a potential toleration to channel errors and the possibility of reduced bandwidth transmission.