The objectives in the first part are to obtain large compression ratio and high image quality after performing the fractal image compression (encoding) and decompression (decoding) to real world images. Fractal image compression is still a new image compression approach but it shows great potential. The result produced by the encoding process is a union of fractal transformations, each of which corresponds to a certain image block (a partition in the original image). Through these transformations, a fixed image is reconstructed after recursive iterations upon any initial image in decoding process. The compressed image requires much less storage than the original one and the reconstructed image approximates the original image very closely. Master of Engineering