Internet based communications are evolving at a tremendous rate. Encryption of data has become an important way to protect data resources especially on the Internet, intranets and extranets. Steganography is a process of hiding data inside a sharing medium. A technique of hiding multiple images in multiple sharing images is proposed. A covering image of pixel area greater than twice a secret image is chosen which enables embedding multiple secret images inside. Multiple secret images are encrypted using simple XOR operations over the covering images. The covering images are transmitted over the communication medium to the authenticated user base on key management. The decryption resolves the secret images to the user at the other end. The scheme suffers one bit information loss which happens in the last bit of the byte which is negligible.